Govt jacks up petrol price by Rs14.85 per litre
With the change, petrol will be available for Rs248.74 while the HSD for Rs276.54.
Likewise, the price of Kerosene was increased by Rs18.83 and Light Diesel Oil by Rs18.68 with the new prices set at Rs230.26 and Rs226.15, respectively.
Addressing a news conference, Finance Minister Miftah Ismail said that the increase was made to meet the conditions set forth by the International Monetary Fund (IMF).
“Imran Khan [government] had violated the agreement with the IMF to increase the petroleum levy every month,” the minister told media persons.
He further said that the agreement with the global fund lending institution was moving forward smoothly and as per plan.
The minister said that the increase was made in view of the rising prices of petroleum products in the international market.
He also said that the tenure of agreement with the IMF had been increased from three to four years.
The size of the loan programme has also been increased from $6 billion to $7 billion, he added.
Miftah further said that the sales and income tax refunds of all sectors have been made.
Speaking on the occasion, Minister of the State for Petroleum Musaddiq Malik hoped that the country would stabilise financially in a few months to come.
“The government is aiming at providing relief to the masses. We are working to rid the country of inflation and generate jobs.”
Malik added that the focus of the government was on boosting small businesses and creating more opportunities for youth.
In view of the fluctuations in petroleum prices in the international market and exchange rate variation, the government has decided to apply petroleum levy partially and revise the existing prices of petroleum products as agreed with the development partners,” read the official notification, announcing the hike.
Two days ago, it was reported that if the government maintains the existing petroleum prices for the upcoming fortnight, it would have to bear the price differential claims or pay subsidy to the consumers.
The present government has already come in for heavy criticism due to making a massive increase in petroleum prices after coming to power in early April. A further increase in petroleum product prices will be a big challenge for the government.
Diesel is mainly used in the transport and agriculture sectors. Any further increase in its price will result in high inflationary pressure on the people.
It will particularly affect the agriculture sector which is already facing a miserable situation due to a record increase in the prices of fertilisers. It will also impact the supply of food products across the country.
Petrol is used in motorbikes and cars, and a further increase in its price will hit the middle class of society.
