FUEL is not an isolated commodity. From farms to freight trucks to factories, it is the price of diesel that sets the tone across the supply chain. What looks like an additional few rupees at the pump become hundreds more at the grocery store, or thousands more when it comes to a family’s monthly budget. Inflation here does not trickle, it floods.

The recent hike in fuel prices came at a moment of mounting vulnerability. Pakistan’s currency, which had shown relative calm for months, slipped again to close at Rs283.15 per USD. A weaker rupee makes every imported item more expensive. The result is a dangerous double squeeze: global fuel hikes on the one side, and currency’s loss of purchasing power on the other. Ordinary households are stuck in the middle, paying the price twice.

The government continues to treat fuel pricing as an accounting exercise rather than a human one. What is missing is any real effort to shield people from external blows. The government continues to

pass on every shock downstream, leaving the people struggling to survive amid the deluge. Economists will argue that no country can escape the impact of global oil markets. That is partially true becasue countries with stronger systems do build cushions. Pakistan has none.

The latest rise may be worth a few rupees on paper, but, for millions, it means thinner meals, cancelled doctor visits, and children walking instead of riding. Combined with a sliding rupee and fragile reserves, it highlights an economy still exposed to every external tremor. Until policy- makers confront structural flaws, fuel hikes will remain less about international markets and more about domestic neglect.

Nofal Rauf Chouhan
Lahore

Published in Dawn, November 28th, 2025