ISLAMABAD: Pakistan on Friday announced a record increase in the prices of petroleum products, breaching the Rs330 mark for the first time in the history of the inflation-hit South Asian country.
The price of petrol was increased by Rs26.02 to Rs331.38 a liter, while high-speed diesel went up by Rs17.34 to Rs329.18, the Finance Division said in a notification.
Pakistan revises fuel prices every fortnight. The latest hike, the third by the interim government of Caretaker Prime Minister Anwaar-ul-Haq Kakar, is expected to fuel further inflation, which was recorded at 27.4 percent year-on-year in August.
“Owing to the increasing trend of petroleum prices in the international market, the government has decided to revise the existing consumer prices of petroleum products,” the notification read.
The new prices took effect at 12am on Saturday.
The hike came a day after the Pakistani central bank unexpectedly kept its benchmark interest rate at 22 percent, saying inflation was likely to rise “significantly” in September before slowing in October and maintaining a downward trajectory thereafter.
Pakistan, facing dwindling forex reserves, secured a badly-needed $3 billion short-term financial package from the International Monetary Fund (IMF) in late June as it teetered on the brink of a default.
While the country avoided a default, it has been facing tough conditions by the IMF and the recent hikes in energy prices also come as part of it.
The rampant increases in energy prices have also sparked nationwide protests in the South Asian country in recent weeks.
