WHILE there has been a spike in inflation in recent years, the recent shock in the shape of petrol price hike has crushed the masses that are already overburdened by financial constraints.

The government officials claim they are providing petrol at much cheaper rate in the region. And, worst of all, they compare the prices in dollar terms with other countries. This is something unfathomable. Anybody with a basic understanding of the exchange rate would never do that. Pakistan’s currency is not as strong as some other’s are.

The government has set a target of Rs610 billion for petroleum levy for the fiscal year 2021-22. Now when the petroleum prices have risen in the international market, the government has also increased the prices and one knows where this will end. Instead of giving subsidy to the businesses, the government has been increasing the prices which will end up in losses of billions of rupees.

Now we must prepare ourselves for another spike in inflation. Even worse, we must also prepare for gas shortages in the coming weeks at any cost.

Ghulam Mustafa
Shahdadkot

Published in Dawn, October 25th, 2021