ISLAMABAD: Pakistan’s finance division announced on Thursday it had increased the prices of petroleum products for the third time in a month, as the country faces double-digit inflation and the government strives to keep the economy afloat.
Pakistan’s new administration has swallowed the bitter pill of raising petroleum prices three times during the course of this month in a desperate hope to revive a stalled $6 billion loan program offered by the International Monetary Fund (IMF).
The IMF had suspended the loan facility in February after the previous administration of ousted prime minister Imran Khan went against its terms and conditions by announcing subsidies worth billions of rupees for the fuel and power sectors.
Pakistan is actively seeking external finances amid a mounting import bill since its foreign currency reserves have tumbled and its current account deficit has ballooned.
“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,” the finance division said in a press release.
It further noted the price of petrol had been increased by Rs14.85 per liter, high-speed diesel by Rs13.23 per liter, kerosene by Rs18.83 per liter, and light diesel oil by Rs18.68 per liter.
The finance division said the new prices of petroleum products would be in place from July 1.
After the latest hike, the price of petrol in Pakistan has surged to Rs248.74 per liter, high-speed diesel to Rs276.54 per liter, kerosene to Rs230.26per liter and light diesel oil to Rs226.15 per liter.