Pakistan raises the prices of petroleum products by Rs30 per liter
Pakistan government has decided to raise the prices of petroleum products by Rs30 per liter, with the hike set to go into effect on May 27, Finance Minister Miftah Ismail announced.
The new price of petrol will be Rs179.86 per liter and diesel will be Rs174.15. The kerosene oil will now cost Rs155.56 and light diesel Rs148.31.
The decision was taken after IMF emphasized the importance of rolling back fuel and power subsidies to revive the funding program.
The finance minister at a press conference in Islamabad explained that the decision was taken in order to ensure the revival of the International Monetary Fund (IMF) program so that the country can resume receiving aid from the 39-month $6 billion package signed with IMF in 2019. About half of the IMF funds are yet to be released
Ismail said the government had no other option but to raise the prices, adding that “we are still bearing a loss of Rs56 per liter on diesel” under the new pricing.
He said the decision was a tough one for Prime Minister Shehbaz Sharif but said that “we cannot let the state sink for the sake of politics.”
Reuters reported earlier that the IMF and Islamabad had reached a deal to release over $900 million in funds, once Pakistan removed the fuel subsidies and hiked prices.