Record Increases in Petrol, Diesel, Price in Pakistan’s Fiscal Year 2023-24

In the current fiscal year of 2023-24, Pakistan has witnessed unprecedented increases in the prices of petroleum products, breaking all previous records. This surge is largely attributed to the stringent conditions set by the International Monetary Fund (IMF), impacting not only petrol and diesel prices but also electricity and gas rates.

Petrol and Diesel Prices Soar:

For the first time in history, a levy of 60 rupees imposed on both petrol and diesel due to IMF conditions. This resulted in the prices of these essential fuels reaching their highest levels ever recorded in the country.

• Beginning of the Fiscal Year: At the start of the fiscal year, petrol priced at 262 rupees per liter, while diesel was at 260 rupees 50 paisa per liter.
• Current Prices: As the fiscal year draws to a close, petrol has risen to 268 rupees 36 paisa per liter, and diesel to 270 rupees 22 paisa per liter.
• Peak Prices: On September 16, 2023, during the caretaker government, petrol hit an all-time high of 331 rupees 38 paisa per liter, and diesel reached 329 rupees 18 paisa per liter.

Electricity Price Hikes:

Throughout 2024, consumers have faced continuously increasing electricity costs, with a staggering total burden of over 1,700 billion rupees imposed through various charges:

• Basic Tariff Increase: 700 billion rupees added.
• Permanent Surcharges: 335 billion rupees added.
• Monthly and Quarterly Adjustments: Over 700 billion rupees added.

Significant Gas Price Increases:

The fiscal year also saw two substantial hikes in gas prices, exacerbating the financial strain on households:

• November 1, 2023: Gas prices for domestic consumers increased by up to 172%.
• February 1, 2024: Gas prices for domestic consumers raised by an additional 67%.

Furthermore, fixed charges for non-protected consumers increased from 460 rupees to 2,000 rupees.

These record-breaking increases in the prices of petroleum products, electricity, and gas have intensified the financial hardships faced by the public. The combined effect of these hikes has significantly contributed to the overall inflation, making everyday living expenses more burdensome for the average citizen.

As the fiscal year 2023-24 concludes, the soaring costs of petrol, diesel, electricity, and gas underscore the severe economic challenges faced by Pakistan. The impact of these price hikes will likely continue to felt by consumers and the broader economy in the coming months.