Govt hikes price of diesel by Rs59, petrol by Rs24

On Wednesday, the federal government increased the price of all petroleum products, including Rs24 per liter for petrol and Rs59.16 per liter for high-speed diesel (HSD). In less than a month, this is the third hike announcement.

The Federal Minister for Finance and Revenue, Miftah Ismail criticised the previous PTI government for reaching an erroneous agreement with the International Monetary Fund (IMF), which tied the incumbent’s hands and forced it to raise oil prices to get the economy back on track.

The frequent hikes have had a significant impact on the public transit sector, as well as low-income persons who are unable to afford fuel at such exorbitant prices.

Finance Minister stated that the government faced a significant challenge in reviving the country. “If oil prices do not rise, the government may risk default”. He went on to say that raising the prices of petroleum items was a difficult decision.

Prime Minster (PM) Shehbaz Sharif also tweeted in this regard, saying that the government had no alternative but to raise petrol prices in order to restore the bailout.

New POL prices

Petrol will now be sold for Rs233.89 per liter after a Rs24.03 increase, HSD will cost Rs263.31 per litre after a Rs59.16 increase, kerosene oil is priced at Rs211.47 per liter after a Rs29.49 increase, and light diesel oil will cost Rs207.47 per liter after a Rs29.16 increase.

In an attempt to justify the increase, the Finance Minister stated that the international price of gasoline was $120 per liter and government had no choice but to pass on the burden of overseas prices to Pakistani consumers

He also chastised Imran Khan, the PTI chairman, and former Prime Minister, for causing the current crisis with his policies. “I’ve been watching the country’s position for 30 years, but I’ve never seen an inflationary situation like this,” he added.

According to Ismail, the administration is bound by agreements reached by the PTI government with the international lender.

He admitted that the increase in gasoline prices will hurt the middle and poor classes. He did add, though, that the government would take measures to mitigate the impact on the most disadvantaged.