Govt increases petrol price by Rs24.03 per litre

Govt increases petrol price by Rs24.03 per litre


Govt increases petrol price by Rs24.03 per litre

ISLAMABAD (Dunya News) – In another jolt to the inflation-hit masses, the government has decided to increase petrol and diesel prices by Rs24.03 per liter from June 16.

This was announced by Finance Minister Miftah Ismail during a press conference today (Wednesday).

After the increase in prices, new petrol price will be Rs235.79 per liter while diesel will be sold at Rs263.31 per liter after an increase of Rs59 per liter, while kerosene oil will be sold for Rs211.43, and the price of light diesel oil will be Rs207.47.

He said that the new prices will come into effect from 12 am on June 16.

Earlier it was reported that Prime Minister Shehbaz Sharif has rejected a summary to increase in the prices of petroleum products. Sources privy to the finance ministry said that there was no chance of Rs23 increase in price of petrol and Rs53 increase in price of diesel.

On the other hand, the Oil and Gas Regulatory Authority (OGRA) sent a summary to the petroleum division for another increase in petroleum product prices from June 16.

The oil regulatory authority has prepared a summary requesting an increase in petroleum prices from June 16 in light of negotiations with the International Monetary Fund (IMF).

The authority had also proposed ending fuel price subsidies.

Govt, IMF talks

It is pertinent to mention here that the International Monetary Fund (IMF) had urged Pakistan to end subsidies on electricity and petroleum products to revive the program.

According to a statement issued by the IMF, the mission led by Nathan Porter, held virtual and direct talks with Pakistani officials on policies to ensure economic stability and sustainable growth in Pakistan from May 18 to May 25.

The statement stated that the mission held constructive talks with Pakistani officials to reach an agreement on policies and reforms to conclude the seventh review of the pending reform program, which is supported by the IMF Extended Fund Facility arrangements.

The IMF said that significant improvements had been made during the mission, including high inflation and fiscal and current account deficits, while adequate protection was being ensured to end the sharp decline. In this regard, the implementation of the policy rate hike from May 23 was a welcome step.

It was informed that the promises made in the previous review in the financial sector have not been fulfilled and the authorities announced partial subsidies for fuel and energy in February, statement sated.

"The team emphasized the urgency of concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives." IMF added.

“The IMF team looks forward to continuing its dialogue and close engagement with Pakistan’s government on policies to ensure macroeconomic stability for the benefit all of Pakistan’s citizens.”