Fuel Hike.

From the rupee being devalued and an 11 percent increase in the prices of petroleum products internationally, the economic crisis continues to unfold disastrously. This morning, a Rs 35 increase in petrol and diesel was announced and enacted. The Finance Minister cushioned the news by reiterating that the last four months had seen diesel and kerosene oil prices decrease but the current devaluation left no further options besides a price hike.

Whether this will unlock the IMF tranche is yet to be seen but a successful review is essential to circumvent the balance of payment crisis. In a desperate measure to secure external financing, draft ordinances to impose new taxes have also been prepared. This comes after the government has accepted IMF demands. It also means that more hikes in the gas and electricity sectors are upcoming, including a sales tax on raw materials, indicating that purchasing power will be shot down as the government grows increasingly desperate.

Earlier this week, the cost-cutting electricity outage cost the textile industry around $70 million. Newer taxes and the ordinances being prepared will further target these...