Prices of the petroleum product fluctuate in the global market in result of trade wars and gulf tensions between the US and Iran. This fluctuation of prices also cast effects on the prices of petroleum products in domestic markets of different countries. The United Arab Emirates (UAE) and Pakistani government have revised the prices in their domestic markets respectively.
However, this revision of prices have earned little bit sarcastic response from economic and social segments as critics are of the view that the exorbitant raise in POL prices would unleash the storm of inflation in the country and demanded the reversal of proposed petroleum price hike.
The international crude oil prices remained stagnant but the government has increased the prices which will severely affect the masses. Also, the government is receiving monthly oil supplies worth $275 million from Saudi Arabia on deferred oil payment. After the upsurge in POL prices, HSD price has increased to Rs132.47 while petrol has touched the highest mark of Rs117.83.
At a time when masses are already reeling under skyrocketing inflation (around 9%), the move to raise the petroleum products rates ahead of Eid will radiate a negative message and it will double the sufferings of common man.
High speed diesel is widely used in agriculture and transport sectors and therefore increase in its price would have a direct impact on life of a common man due to inflationary impact. Pakistan’s manufacturing sector already facing a big challenge on cost competitiveness and given raise in petroleum prices will badly impact the export targets. The petroleum price hike would increase the monthly budget of the common man; it will also have a negative effect on the industry and would send prices of different products skyrocketing.
The new wave of inflation would grip the entire nation with seizing purchasing power, which is widely fared to scale down business activities in the country. The move is going to crumble the local economy, adding that the small businesses would also fall flat to the inflation that would be unaffordable to any of the traders.