Pakistan Ranks Second Globally in Petrol Unaffordability, Trailing Only Ethiopia

 

Domestic fuel costs have skyrocketed, hitting 458.40 per litre following Thursday’s most recent adjustment. This spike has rendered petrol among the most expensive globally when measured against the average citizen's earnings.

The price hike has placed a heavy burden on the public, as many households are already grappling with the escalating costs of basic necessities.

While high energy costs are a worldwide trend, the primary issue lies in the disparity between local wages and the pump price. Essentially, the public's buying power has failed to track the rapid rise in energy expenditures.

Comparative data indicates that the nation now holds the position of the world's second least affordable fuel market. Ethiopia is currently the only country where fuel is even more out of reach relative to income.

In Ethiopia, where daily earnings average approximately $1.50, petrol costs fluctuate between $1.40 and $1.80 per litre. This comparison underscores the extreme financial strain faced by citizens in both nations regarding travel costs.

The current landscape reveals a widening divide between what people earn and what they pay for energy. For most families, this necessitates dedicating a much higher percentage of their budget to commuting and transport. This shift also impacts the commercial sector, as rising logistics costs are often passed on to consumers through pricier products.

Financial analysts caution that if these price levels persist, the broader economy could suffer from diminished consumer demand. Many individuals may find themselves sacrificing other vital requirements just to maintain their daily mobility.