Cash-strapped Pakistan significantly raises petrol and diesel prices: 10 facts

Steps to meet IMF conditions include raising fuel and energy prices. (representative)

New Delhi:
Ailing Pakistan announced an increase in petrol and diesel prices of 35 rupees, days after its currency fell to its lowest level against the US dollar on the interbank and open market.

Here are 10 points about the diesel and petrol price hike in Pak:

Petrol and diesel prices in Pakistan have risen by 35 rupees, while the prices of kerosene oil and light diesel have risen by 18 rupees, Pakistan’s Finance Minister Ishaq Dar announced in a televised address 10 minutes before the increased prices of became force.
“Government has announced new prices of petroleum products effective January 29, 2023 at 11:00am High Speed Diesel – 262.80 rupees per liter MS Petrol – 249.80 rupees per liter Kerosene Oil – 189.83 rupees per liter Light Diesel Oil – 187 rupees per liter ” tweeted Pakistan’s finance ministry.
Finance Minister Ishaq Dar said that despite international prices and devaluation of the rupee, “under the direction of Prime Minister Shehbaz Sharif, we have decided to increase the minimum price of these four products,” the Dawn newspaper reported.
Ishaq Dar added that the gasoline price has not increased in the past four months. “In fact, diesel and kerosene oil prices have come down,” Dawn quoted him as saying.
Mr Dar explained the reason behind the increase and said it was done on the recommendation of the oil and gas regulator. “They said there were reports of artificial shortages and hoarding of fuel in anticipation of price increases – hence this price increase is being implemented immediately to counter this.”
The value of the Pakistani rupee has fallen by 34 rupees against the US dollar since Thursday, the largest depreciation in both absolute and percentage terms since the introduction of the new exchange rate system in 1999.
The Pakistani rupee also fell sharply after the government lifted an unofficial cap on the USD-PKR exchange rate to revive the International Monetary Fund’s (IMF) stalled lending program.
The ailing country must complete the ninth review of a $7 billion IMF program that would see not only a $1.2 billion payout, but also inflows from friendly countries and other multilateral lenders.
Prime Minister Shehbaz Sharif has said his coalition government is determined to finalize the bailout, even if it will have to pay a political price for the decision just months before national elections, Bloomberg reported.
Steps to meet IMF conditions include raising fuel and energy prices and raising taxes, which, along with the share price fall of about 13 percent over the past two days, could further fuel inflation.

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