Pakistan hikes petrol, diesel prices by Rs 19 per litre from August 1 in ‘national interest’: Report

Pakistan hiked petrol and diesel prices by a whopping Rs 19 per litre with effect from August 1. The announcement was made on July 31 but the government did not issue new rates as the officials tried to maintain or reduce the rates. While petrol prices in Pakistan have gone up by Rs 19.95 per litre, diesel prices have gone up by Rs 19.90 per litre, Geo News reported.

After the recent hike, a litre of petrol costs Rs 272.95 per litre in Pakistan whereas diesel costs Rs 273.40 per litre in the cash-strapped nation. Before the hike, petrol and diesel prices stood at Rs 253 per litre and Rs 253.50 per litre respectively.

While announcing the rate hike that the increase in fuel rates across Pakistan, Finance Minister Ishaq Dar said this was done in “national interest” as committed with the US-based financial agency International Monetary Fund (IMF). He added the hike was inevitable since Pakistan had agreed with the IMF that the Shehbaz Sharif government would slap petroleum development levy (PDL) to petrol and diesel rates.

"We tried to either reduce or see what could be adjusted in its working. But we all know about our commitments with the IMF on the petroleum development levy," Dar said.

He added that the government would have reduced the PDL to provide relief to the inflation-tired public. Dar further mentioned he would not resort to moves that the previous government did such as decreasing the petrol price. The US-based financial agency has imposed strict conditions on Pakistan to ensure that the $3 billion Standby Agreement continues smoothly.

The $3 billion Standby Agreement with the IMF was finalized on June 30 after almost eight months of negotiation over the issue of fiscal discipline. One of the many requirements of this agreement is to raise the petroleum levy to Rs 60 per litre.

The major increase in petroleum prices can have political implications for the Shehbaz Sharif-led government, which is months away from a general election. Pakistan already has an inflation rate of over 29 per cent.

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