Pakistan has emerged as the world’s second most fuel-unaffordable country when compared with income levels after petrol prices surged to Rs. 458.40 per litre on Thursday.
Only Ethiopia ranks worse, where daily wages average around $1.50 while petrol sells for between $1.40-1.8 per litre.
Many commentators on X mentioned that despite Ethiopia being a landlocked economy fully dependent on imported oil transported thousands of kilometres by road, Pakistan faces almost the same issues despite having ports and domestic oil production.
The federal government on Thursday announced a record-high increase in petroleum prices, raising petrol by Rs. 137.23 per litre and high-speed diesel by Rs. 184.49 per litre. Diesel prices climbed to Rs. 520.35 per litre and petrol at Rs. 458 per litre.
Petroleum Minister Ali Pervaiz Maliik and Finance Minister told reporters during a press conference that the increase was unavoidable as Pakistan’s fiscal position no longer allows easy fuel subsidies.
Someone posted on X that the real issue lies not only in fuel pricing but in purchasing power. While prices of energy and essential goods continue to rise, salary increments are hard to come by for everyone.
Pakistan produces roughly 18 percent of its petroleum requirements locally and benefits from seaport access for imports, factors that traditionally provide logistical advantages over fully import-dependent economies. But it still faces greater strain than many lower-income countries in Asia and Africa.
Since last month, fuel prices have been raised across Pakistan in 4 out of 6 official weekly reviews.