Double whammy

As Eidul Fitr approaches, Pakistanis are grappling with a stark reality: a significant surge in the prices of petrol and electricity. The government has announced a significant raise of Rs9.66 in the price of petrol to take it to Rs289.41 per litre. This abrupt escalation, attributed to fluctuations in the global market, adds strain to the already stretched household and business budgets. In tandem, Nepra has approved a quarterly tariff adjustment of Rs2.75 per unit for all consumers across the nation for the next three months (April to June), with an estimated additional revenue impact exceeding Rs85 billion. The Ministry of Energy’s Power Division has assured consumers of a reduction of Rs1.68 per unit in electricity bills compared to the preceding month due to this tariff adjustment. However, the overall impact on consumers, particularly amidst the economic challenges remains considerable.

This simultaneous escalation in petrol prices and power tariffs will create an urgent need for comprehensive measures to alleviate the financial burden on the populace. While the government attributes the petrol price hike to international market dynamics, it must prioritise measures to cushion the blow for consumers, particularly the most vulnerable. Similarly, while Nepra’s decision on power tariff adjustments may well reflect economic realities, concerted efforts are imperative to ensure that electricity remains accessible and affordable for all citizens.

As citizens brace themselves for the financial implications of these price hikes, there is need for the government to take proactive measures to mitigate the impact on low-income households and prevent them further hardships. The government must explore sustainable solutions that balance economic considerations with the welfare of its people. This includes promoting renewable energy alternatives, enhancing energy efficiency measures and implementing targeted subsidies to alleviate the burden on the most vulnerable segments of society.

Published in The Express Tribune, April 3^rd, 2024.

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