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11:00 GMT, Monday, 21 July 2008 12:00 UK

Pakistanis hit by 14% petrol rise

By Syed Shoaib Hasan
BBC News, Islamabad

Islamabad cars

Pakistan's government has raised petrol and diesel prices by 14% - the largest such increase in the country's history.

The move has been met with protests by manufacturers and consumers. It is the sixth fuel price rise since the new government took office in February.

The latest price rise will put more pressure on the already beleaguered coalition government.

The government says it was forced to make the increase because of rocketing international oil prices.

Anger growing

The new price rise affects all petroleum-based products, including petrol and diesel.

Officials say the latest announcement should have been made a week ago.

But they say it was delayed on the orders of Prime Minister Yousuf Raza Gilani until after he had made an address to the nation on Saturday evening.

The address was meant to highlight his achievements since coming to power.

But the new government has had to face increasing criticism that it has not done enough to combat mounting economic instability.

The government blames global economic difficulties and rapidly increasing oil prices for the fuel prices in Pakistan.

But that has not stopped anger growing among already frustrated citizens who have also been hit badly by soaring food prices.

In Pakistan's biggest city, Karachi, the mood was not helped when many petrol stations deliberately restricted sales on Sunday before the new prices came into effect in order to sell more at the higher rate.

On Monday public transport in Karachi was hit by a transport union strike.



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Related to this story:
Pakistan warning over CNG prices (04 Jul 08 |  South Asia )
Pakistan's poor hit as food prices soar (30 Jun 08 |  Business )
Nepal anger over fuel price rise (23 Jun 08 |  South Asia )
Why the oil price keeps rising (09 Jun 08 |  Business )
Pakistan's economic woes worsen (29 May 08 |  South Asia )
Bangladesh faces food crisis (10 Apr 08 |  Business )

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