ISLAMABAD: Pakistan announced an increase in petrol and diesel prices on Friday to meet fiscal objectives laid down in a deal with the International Monetary Fund (IMF), adding further fuel to its sky-high inflation amid nationwide protests over electricity bills.

The latest hike is the second one announced by the interim government of Prime Minister Anwaar-ul-Haq Kakar which came to power earlier this month.

Pakistan revises fuel prices every fortnight. In the latest announcement, the price of petrol has been increased by Rs14.91 to Rs305.36 a liter and diesel by Rs18.44 to Rs311.84, a notification issued by the Finance Division said. 

“Owing to the increasing trend of petroleum prices in the international market and exchange rate variations, the government has decided to revise the existing consumer prices of petroleum products,” the notification read.

The new prices took effect at 12am on Friday.

Pakistan secured a badly-needed $3 billion short-term financial package from the IMF in late June that helped it avoid default but came with tough conditions and fiscal reforms, including a petroleum levy of up to 50 rupees a liter, alongside a string of painful measures such as raising extra revenues, increasing energy prices and a market-based exchange rate, which has already fueled inflation.

The country’s Consumer Price Index rose to 28.3 percent in July, year-on-year, with prices up 3.5 percent in July from the previous month. In June, the CPI rise was 29.4 percent year-on-year, coming off a record 38 percent in May.

On Thursday, the Pakistani rupee plummeted to an 8th consecutive record closing low of Rs305.5 against the US dollar, Pakistani central bank data showed. The rupee has shed 4.6 percent of its value since the Kakar administration took control and lost 6.2 percent of its value through August.