\u2022 Public anger grows over timing, scale of increase in petrol, diesel rates
\u2022 Daily-wage earners, gig workers take the brunt
\u2022 Transport fares surge; vegetable and fruit prices jump within hours
\u2022 Transporters say fare hike unavoidable
\u2022 Fuel use drops as people cut travel<\/p>\n\n\n\n
LAHORE \/ PESHA\u00adWAR \/ KARACHI: The sharp Rs55 per litre increase <\/a>in fuel prices is sending ripple effects across the country, raising transportation costs, driving up food prices and putting additional burden on households already grappling with traditional inflation during the holy month of Ramazan.<\/p>\n\n\n\n \u201cIt was the last thing Pakistanis needed and the government delivered it mercilessly,\u201d said one of the several respondents from different social strata whom Dawn<\/em> spoke to on Wednesday.<\/p>\n\n\n\n \u201cLife itself is beginning to bite now, as making both ends meet has become an almost impossible struggle,\u201d he added.<\/p>\n\n\n\n The resentment is not limited to consumers. Traders and professionals say the government\u2019s handling of the increase has deepened public frustration.<\/p>\n\n\n\n \u201cThe manner of the hike was even cruel,\u201d said Anees Ahmad Khan, a trader from Lahore. \u201cIn the morning, federal ministers were saying Pakistan was safe for now as it had around a month\u2019s stock, meaning international prices would not affect consumers immediately,\u201d he said.<\/p>\n\n\n\n Economists say the impact of higher fuel prices rarely remains confined to petrol pumps and quickly spreads across the economy.<\/p>\n\n\n\n \u201cConventional economics tells us that oil price hikes trigger a chain reaction across the economy,\u201d Prof Kamran Butt said.<\/p>\n\n\n\n \u201cThey increase transportation costs, push up the prices of daily-use commodities and food items, raise the overall cost of living, reduce purchasing power, increase poverty and unemployment, slow economic activity and eventually fuel public discontent as quality of life deteriorates,\u201d he explained.<\/p>\n\n\n\n \u201cOne wonders what the government seeks to achieve through such social cruelty. If IMF conditionalities are the only reason, then the condition of Pakistanis should also have been factored in,\u201d he said.<\/p>\n\n\n\n Particularly for daily wage earners and gig workers, the economic theory translates into an immediate hit to already fragile incomes.<\/p>\n\n\n\n \u201cIn 12 hours of work a day, I hardly make Rs1,000 delivering food to households,\u201d said Muhammad Ramzan, a motorcyclist working for an international food chain. \u201cMy daily petrol consumption is about three litres, which means the recent increase will cost me another Rs165, which is about 16.5 per cent of my daily income when I actually manage to earn Rs1,000, which itself is occasional.\u201d<\/p>\n\n\n\n The ripple effects are already visible in local markets, where traders say prices adjust within hours of any fuel increase.<\/p>\n\n\n\n \u201cThe first and most immediate pressure of petrol price hikes is felt in fruit and vegetable markets, where prices increase within hours,\u201d said Muhammad Idrees, a vegetable vendor at Ravi Road Market, the city\u2019s largest wholesale market.<\/p>\n\n\n\n \u201cThe oil price announcement came late in the evening, and prices in the market were up by 20pc to 25pc by early morning. Perishable daily-use items suffer first. Vegetable sales are sustaining, but fruit sales have already taken a dip,\u201d he said.<\/p>\n\n\n\n The transport sector, heavily dependent on fuel, is also bracing for the fallout.<\/p>\n\n\n\n \u201cPeople are right when they complain about transportation costs,\u201d said Nasir Iqbal, a cab driver who has been working with an app-based transport company for the last 10 years.<\/p>\n\n\n\n \u201cDuring this period, fares have multiplied many times due to rising fuel prices and higher operating costs. Each increase reduces the number of commuters while raising the cost of doing business. This latest hike will be no exception as it will increase fares by at least 15pc to 20pc and further reduce the number of passengers.\u201d<\/p>\n\n\n\n