The nation is in a shock and awe not merely because of the war in the region, but precisely for the petrol bomb dropped on it. The sudden hike in petrol and diesel prices was unwarranted, as the monetary trouble has been passed on to the consumers for a product that was already sitting inside Pakistan and that too bought on a subsidised rate. This is tantamount to fleecing the masses who are already burdened under a grave economic situation, reeling under lack of social mobility and soaring inflation. The rise of Rs55 per litre or 20% in petrol prices is more than the climb in the international market.

The crude manner in which the announcement came from wizards in the federal government was in utter bad taste. The decision to increase the levy on petrol to a record Rs105.4 per litre was a callous measure. The ‘wisdom’ on the part of the Prime Minister to “fully pass on the impact in one go” in order to “work as a demand compression measure” is a faulty decision. It will have a spiral effect on prices across the board, and that too in the holy month of Ramazan when essentials are already out of the reach of the common man.

This price escalation has come just six days after the routine price adjustment manual, and is unprecedented. The auto-correction due on March 15, as scheduled, is likely to further make the graph untenable. This surge will significantly push inflation up by raising the cost of transportation and food supplies, apart from providing a selfish incentive to the retailers to pass on the buck to choice-less consumers. It is a given that district administrations are at fail in keeping a tab on prices.

Another critical aspect is that the government has deviated from the IMF conditionality of making use of about Rs400 billion reserved for contingency needs, and has instead added to the burden on petrol consumers. To rub salt into the public wounds, no austerity policies are in sight as far as the lifestyle of the ruling elite is concerned. ‘Work from home’ and ‘schools closure’ are the only cost-cutting options under consideration.