Govt jacks up petrol price by Rs14.85 per litre

Govt jacks up petrol price by Rs14.85 per litre


Govt jacks up petrol price by Rs14.85 per litre

ISLAMABAD (Dunya News) – In yet another jolt to the inflation-hit masses, the government has decided to increase petrol and diesel prices by Rs14.85 per liter from July 1.

The price of High Speed Diesel has been jacked up by Rs13.23 after which it will be sold at Rs276.54. 

Meanwhile, the prices of kerosene and light-diesel oil (LDO) were increased by Rs18.83 and Rs18.68, respectively. The new price for kerosene will be Rs230.26 and that of LDO will be Rs226.15.

On Wednesday, National Assembly (NA) had approved the Rs50 per litre petroleum levy as the house passed the Finance Bill 2022-23. The Lower House of the Parliament approved amending the Petroleum Products (Petroleum Levy) Ordinance, 1961, caving in to the IMF’s demand of imposing a petroleum tax levy of Rs50.

However, the finance minister, while speaking on the floor, said that the petroleum levy was at Rs0 currently and reiterated that the government will not impose Rs50 in one go.

“The government has got the permission from you (the house) to impose up to Rs50 per litter levy on petroleum products but there is no intention to take the levy up to this figure”, he said.

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.”