Pakistan's caretaker government has announced yet another round of fuel price hikes, sending petrol and diesel prices to an unprecedented high, exceeding Rs 330 per litre. This move comes amidst soaring double-digit inflation, exacerbating the financial woes of the cash-strapped nation.

Late on Friday, the Ministry of Finance announced the price hike, with petrol climbing by Rs 26.02 and diesel by Rs 17.34 per litre. The clearance for these hikes was granted by caretaker Prime Minister Anwaarul Haq Kakar. Following this increase, the cost of petrol and high-speed diesel (HSD) has crossed the Rs 330-per-litre threshold, marking a significant hike.

After the hike, petrol and high-speed diesel (HSD) are costing over Rs 330 at the filling stations, "a psychological barrier that has been crossed for the first time in the country’s history," the Dawn newspaper wrote. These fuel price hikes are particularly burdensome as they follow a sharp 27.4 percent increase in the inflation rate observed in August, impacting all sectors of society, given that petrol and HSD are essential for both private and public service vehicles.

The government attributes these revisions to the upward trend in global petroleum prices. This increase comes on the heels of a similar adjustment made on September 1, when petrol and diesel prices surged by over Rs 14. The cumulative effect of these hikes in just one month amounts to an astonishing Rs 58.43 and Rs 55.83 per litre increase for petrol and HSD, respectively. Since assuming power in August, the caretaker government has witnessed petrol and diesel becoming costlier by 20 percent.

It is important to note that petroleum products in Pakistan are not subject to the Goods and Services Tax (GST). However, the government imposes a petroleum development levy (PDL) of Rs 60 per litre on petrol and Rs 50 on HSD as part of its commitment to the International Monetary Fund (IMF). In July, Pakistan received $1.2 billion from the IMF as part of a $3 billion bailout program aimed at stabilizing the nation's fragile economy.

Pakistan's economy has been in a downward spiral for several years, leading to unchecked inflation and mounting pressure on the country's impoverished masses. This surge in fuel prices exacerbates the financial challenges faced by a significant portion of the population, making it increasingly difficult for them to make ends meet.