ISLAMABAD: Pakistan on Tuesday witnessed yet another surge in the prices of petroleum products in less than a month, as the country’s new caretaker administration raised the fuel prices by up to Rs20 per liter amid high inflation.
The government regularly reviews the cost of petroleum products on a fortnightly basis, taking into consideration the volatility in the international oil market and the value of the US dollar against the national currency.
Pakistan’s last administration also announced a massive increase in the rates of petroleum products on August 1, attributing its decision to safeguard the “national interest” while pointing out that the country was in a stringent International Monetary Fund (IMF) program and had to abide by its economic commitments.
The country’s Caretaker Prime Minister Anwaar-ul-Haq Kakar approved the finance division’s proposal to increase the prices of petrol and high-speed diesel by Rs17.50 and Rs20, respectively, after announcing to pursue the previous administration’s economic policies in a meeting.
“Petroleum prices in the international market have increased during the last fortnight,” the finance ministry announced in a social media post. “As a result, the consumer prices in Pakistan are also being revised.”
Pakistani consumers will now be paying Rs290.45 per liter for petrol and Rs293.40 per liter for high-speed diesel from Wednesday.
The government has kept the prices of kerosene and light diesel oil unchanged.
It is pertinent to mention the fuel prices have surged by about Rs40 per liter within the course of this month. This is despite fears of mounting inflation after the consumer price index in the country hit 38 percent in May before gradually cooling down 28.3 percent last month.
Pakistan clinched a crucial $3 billion deal with the IMF in late June to avert a sovereign default on its international financial obligations, though it is required to implement stringent reforms agreed with the global lender to keep receiving the loan tranches in the coming months.
