ISLAMABAD: Finance Minister Miftah Ismail on Thursday announced that the federal government has decided to raise the prices of petroleum products by Rs30 per litre, with the hike set to go into effect at midnight tonight.
The finance minister made the announcement at a press conference in Islamabad and explained that the decision was taken in order to ensure the revival of the International Monetary Fund (IMF) programme.
The price hike comes a day after the government and the IMF failed to reach an agreement on an economic bailout mainly because of the former’s indecision on fuel and electricity subsidies and resultant next year’s budget uncertainties.
Ismail said that some burden was shifted on the masses, but despite the massive increase in the price of petroleum products, the government was still bearing losses.
It is worth mentioning here that The PTI-led government had originally agreed to the IMF’s demand of raising the price of electricity and petroleum products but, later in March, Imran Khan announced subsidies on both commodities — and the current government was continuing with the same arrangement.
The finance minister noted that following the decision to hike the prices, financial markets would witness stability, the rupee would strengthen, and the economy would get a boost.
New prices (per litre):
- Petrol — Rs179.86
- Diesel — Rs174.15
- Kerosene oil — Rs155.56
- Light diesel — Rs148.31
