Middle East conflict and fuel prices: Who is the Pakistani govt really protecting?

Since the beginning of the US-Israel war with Iran on February 28, global oil prices have risen by a factor of around 50 per cent. In Pakistan, this increase was reflected in the government’s decision to raise the regulated price of petroleum products by 20pc or Rs55 per litre, sending ripple effects across the country from higher transport fares to rising food prices.

With no letup in the Middle East conflict, there remains great uncertainty about when and where the global markets will settle.

It is being suggested that the government will try to protect the public from price surges and volatility. At the same time, discussions are also underway regarding the adoption of austerity measures such as fuel rationing and retail price differentials for vehicle types, notably between two- and four-wheelers.

The discussion assumes that........

© Dawn Prism