ISLAMABAD: Pakistan increased the prices of petroleum products once again on Thursday, as the government seeks to unlock a $1.1 billion loan tranche from the International Monetary Fund (IMF) to stave off an impending default.
Pakistan’s inflation rate surged to 27.6 percent, the highest in over four decades, on a year-on-year basis in January 2023, due to a surge in the cost of transportation and commodities, official data said.
Pakistan revises the price of petroleum products every fortnight. The price hike follows the alarming pace at which Pakistan’s currency has devalued ever since Islamabad liberalized exchange rate policies.
In a notification released late Wednesday night, the Finance Division said the price of petrol has been increased by Rs22.20 per liter, high-speed diesel by Rs17.20 per liter, kerosene by Rs12.90 per liter and light diesel oil by Rs9.68 per liter.
After the price hike, petrol will now be sold across Pakistan for Rs272.20 per liter.
“Increase in price is due to Pakistan rupee’s devaluation applicable for the calculation of the current pricing period,” the notification said.
On Wednesday, Finance Minister Ishaq Dar tabled a finance bill in parliament— another top demand by the IMF— that increased the general sales tax (GST) rate from 17 percent to 18 percent and increased the tax on luxury items from 17 percent to 25 percent.
The government said it had undertaken the move to collect additional taxes of Rs170 billion to meet one of the IMF’s demands. Pakistan has already jacked up tariffs on electricity and gas to meet the international lender’s conditions.
