Fuel levy poses bigger inflation risks
The inflationary impact of fuel prices extends well beyond their relatively small direct weight in Pakistan's Consumer Price Index (CPI), as higher petroleum costs feed into transport, logistics, agriculture and business operations before eventually reaching consumers, economists said. Motor fuel accounts for 2.91% of the urban CPI basket, according to the Pakistan Bureau of Statistics (PBS) data. But the broader transport group has a 6.14% weight, while transport services alone carry a 1.75% weight.