Pakistan increases petroleum prices by Rs30 per liter

ISLAMABAD: Pakistan on Thursday announced a massive increase in prices of all petroleum products by Rs30/- per liter in order to satisfy International Monetary Fund (IMF) for release of $1 billion tranche.

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

Ismail said that the government had decided to increase the prices of petrol, high speed diesel and kerosene oil by Rs30/- liter each effective from midnight 12:00 AM on May 27, 2022.

A day earlier, the IMF refused to continue its talks on bailout package under Extended Fund Facility (EFF) until Pakistan removed the subsidy on fuel and energy.

Former PTI government in February 2022 decided to grant subsidy on petroleum products to ease inflationary pressure on masses.

With the announcement the prices of petroleum products would be: Petrol Rs179.86 per liter; diesel Rs184.15; and kerosene oil Rs156.56.

On February 28, 2022, former Prime Minister Imran Khan announced reduction in prices of petroleum products and freeze the prices till June 30, 2022. This decision came with announce of multi-billion rupees subsidy to keep the fuel prices lower.

This decision was strongly criticized by the legislators, who are now sitting on the treasury benches. The present government despite strong opposition to the decision to grant of subsidy on the petroleum prices, has no option but to keep the prices unchanged during its tenure of more than a month.

However, after the refusal of the IMF to continue talks without removal of subsidy, the PML-N led government passed on heavy burden to the masses.