ISLAMABAD: The caretaker government has increased the prices of petroleum products by Rs 20 per liter for the next fortnight amid the rise in global oil prices, which is the highest price in the country’s history.
The prices of petroleum in the international market have increased during the last fortnight. As a result, consumer prices in Pakistan are also being revised,” the finance division said in a statement late on Tuesday.
The price of petrol has been increased by Rs 17.50 per liter while the price of High Speed Diesel (HSD) has been increased by Rs 20 per litre.
The new fuel prices will be applicable from August 16.
| Product | Existing price w.e.f Aug 1 | New price w.e.f Aug 16 | Change |
| Petrol | 272.95 | 290.45 | +17.50 |
| Diesel | 273.40 | 293.40 | +20 |
Earlier on August 1, the former Pakistan Democratic Movement (PDM)-led government had announced an increase in petrol and diesel prices by Rs 19 per litre, which it said was done amid rising global oil prices. had gone.
The announcement was due on July 31, but the government did not release the new rates as officials sought to maintain or reduce the rates, taking into account the impact of the price hike on the inflation-stressed.
Ishaq Dar, who made the announcement as finance minister for the last time after his government was dissolved on August 12, said the hike was inevitable as Pakistan agreed with the IMF on Petroleum Development Levy (PDL) prices. But had agreed to slap.
The latest increase in fuel prices is likely to trigger a new wave of inflation in August.
Inflation hit a record high of 38 percent in May, but the State Bank of Pakistan (SBP) last month decided to keep the key interest rate at 22 percent amid a modest drop in inflation.
The Monetary Policy Committee (MPC) specifically noted that year-on-year inflation is likely to remain on the downside over the next 12 months, indicating a significant level of positive real interest rates.
Years of fiscal mismanagement have pushed Pakistan’s economy to the brink, with the COVID-19 pandemic, the global energy crisis and record floods inundating a third of the country last year.
But Islamabad last month struck a $3 billion standby agreement with the International Monetary Fund (IMF) that could provide temporary relief for the country’s ballooning foreign debt.
The deal forces the government to end many subsidies that help the poor, but increases in fuel prices are largely in line with global oil price increases.
