Fuel prices raised again to unlock IMF funding

ISLAMABAD:

The federal government on Wednesday announced a massive increase in prices of all petroleum products – especially petrol by Rs24 per litre and high-speed diesel (HSD) by Rs59.16 per litre — the third such raise within the last 20 days.

The new prices would come into effect from midnight tonight, Finance Minister Miftah Ismail said while addressing a news conference in Islamabad. He was flanked by State Minister for Petroleum Musadik Malik.

The finance minister blamed the previous PTI government for making a faulty agreement with the International Monetary Fund (IMF) that had tied the hands of the incumbent and forced it to increase oil prices to put the economy on right track.

He said that the government had a big challenge to rescue country. “If we don’t increase oil prices, the country could face a default.”

He added that it was a difficult decision though to increase the prices of petroleum products. However, he added that government would protect the poor.

After the increase, petrol will be available at Rs233.89 per litre after a hike of Rs24.03, HSD at Rs263.31 per litre following a rise of Rs59.16 per litre, kerosene oil at Rs211.47 per litre after a surge of Rs29.49 and light diesel oil at Rs207.47 per litre after an increase of Rs29.16.

Read more: Pakistan to default if subsidies not abolished till July: Miftah

The government has raised the price of petrol by more than Rs84 per litre in the last 20 days.

The minister said the international price of petrol was $120 per litre as he tried to justify the hike.

“The government had no choice but to pass on the impact of international prices to consumers in Pakistan,” he added.