ISLAMABAD: The caretaker government has increased the price of petrol by Rs17.50 per litre, taking the price to record high of Rs290.45 per litre.
The petrol price is now unprecedented in the history of the county, taking the inflation to an upward trajectory.
Other than that, the price of high speed diesel was also increased by Rs20 per litre. After the increase, high speed diesel will be available at Rs293.40 per litre.
After this announcement, the new prices came into effect at 12am (night between Aug 15 and 16).
The Ministry of Finance (MoF) announced the revised prices late in the night after clearance from Caretaker Prime Minister Anwaarul Haq Kakar, who was sworn in on Monday.
In this connection, the finance division said prices of the two key fuels were jacked by because petroleum prices in the international market had increased during the last fortnight.
However, there was no change in the prices of kerosene and light diesel oil.
The move shouldn’t be a surprise given the agreement Pakistan has reached with the International Monetary Fund (IMF) which makes it impossible for Islamabad not to fulfil the conditions set by the world’s top financial institution.
Soon after the two sides had inked the deal, IMF Managing Director Kristalina Georgieva stressed that Pakistan would have to accelerate structural reforms.
Praising the coalition government for the 2023-24 budget, she said it was a welcome step toward fiscal stabilization, while calling for enhancing tax collection, which, she said, was critical to strengthen public finances, and to eventually create the fiscal space needed to bolster social and development spending.
At the same time, she called for reducing state expenditure and bringing changes in the energy sector through steps like increase in tariff while modifying the subsidy structure.-NNI