Pakistan Hit by Staggering 850% Gas Price Hike Amid Soaring Inflation
OIL & GAS

Pakistan Hit by Staggering 850% Gas Price Hike Amid Soaring Inflation

The Pakistan Bureau of Statistics (PBS) reported an extraordinary 850% surge in gas prices over the past four months. 

During a session of the National Assembly chaired by Deputy Speaker Ghulam Mustafa Shah, detailed data on the rising costs of essential commodities were presented. 

The PBS highlighted that sugar prices had increased by 53.5 per cent, while palm oil prices rose by 61 per cent over the past five years. Additionally, soybean oil, wheat, and crude oil experienced a 35 per cent price hike during the same period. 

The PBS attributed the overall inflation to the rising costs of electricity and gas, driven by the International Monetary Fund (IMF) program. Gas tariffs were raised by 520% in November 2023, with an additional increase of 319 per cent anticipated in February 2024. Similarly, electricity tariffs rose by 35 per cent in November, and another hike of 75 per cent is expected in February 2024. Officials emphasized that these sharp increases in utility costs significantly contributed to inflation in the country.

The Ministry of Finance disclosed that mobile phone users in Pakistan had been taxed a total of PKR 338 billion over the past five years, with details revealing that this amount was collected from consumers.

Prime Minister Shehbaz Sharif claimed credit for a recent reduction in the weekly inflation rate measured by the Sensitive Price Index (SPI). He congratulated the nation on this development, noting that SPI-based inflation had decreased for the second consecutive week, falling to 3.57 per cent year-on-year for the week ending December 5. This reduction was attributed to lower prices for vegetables and pulses.

Official data released on Friday showed that the week-on-week inflation rate had declined by 0.34 per cent, primarily due to decreasing prices of chicken, basmati rice, and pulses. However, the prices of perishable goods such as potatoes, onions, and edible oil continued to rise after a short period of stability.

In a separate update, the Asian Development Bank (ADB) approved a $200 million loan to assist Pakistan in modernizing its power distribution infrastructure. The Power Distribution Strengthening Project aims to tackle issues such as energy losses, climate vulnerabilities, and outdated systems, according to *The Express Tribune*.

The Pakistan Bureau of Statistics (PBS) reported an extraordinary 850% surge in gas prices over the past four months. During a session of the National Assembly chaired by Deputy Speaker Ghulam Mustafa Shah, detailed data on the rising costs of essential commodities were presented. The PBS highlighted that sugar prices had increased by 53.5 per cent, while palm oil prices rose by 61 per cent over the past five years. Additionally, soybean oil, wheat, and crude oil experienced a 35 per cent price hike during the same period. The PBS attributed the overall inflation to the rising costs of electricity and gas, driven by the International Monetary Fund (IMF) program. Gas tariffs were raised by 520% in November 2023, with an additional increase of 319 per cent anticipated in February 2024. Similarly, electricity tariffs rose by 35 per cent in November, and another hike of 75 per cent is expected in February 2024. Officials emphasized that these sharp increases in utility costs significantly contributed to inflation in the country.The Ministry of Finance disclosed that mobile phone users in Pakistan had been taxed a total of PKR 338 billion over the past five years, with details revealing that this amount was collected from consumers.Prime Minister Shehbaz Sharif claimed credit for a recent reduction in the weekly inflation rate measured by the Sensitive Price Index (SPI). He congratulated the nation on this development, noting that SPI-based inflation had decreased for the second consecutive week, falling to 3.57 per cent year-on-year for the week ending December 5. This reduction was attributed to lower prices for vegetables and pulses.Official data released on Friday showed that the week-on-week inflation rate had declined by 0.34 per cent, primarily due to decreasing prices of chicken, basmati rice, and pulses. However, the prices of perishable goods such as potatoes, onions, and edible oil continued to rise after a short period of stability.In a separate update, the Asian Development Bank (ADB) approved a $200 million loan to assist Pakistan in modernizing its power distribution infrastructure. The Power Distribution Strengthening Project aims to tackle issues such as energy losses, climate vulnerabilities, and outdated systems, according to *The Express Tribune*.

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