Petrol costs Rs. 145.8 per liter, diesel costs Rs. 142.6, kerosene costs Rs. 116.5 per liter and light diesel costs Rs. 114 per liter.
Pakistan’s Ministry of Finance announced a new rise in gasoline prices early on Friday, less than a week after the Pakistan Tehreek-e-Insaf (PTI)-led government claimed Prime Minister Imran Khan declined to raise rates in November to “give relief to the people.”
The new pricing would have been substantially higher if the government had followed OGRA’s suggestion, according to a notice sent by the Finance Division around 1:30 a.m. It stated that the government had “absorbed the majority of the burden after making changes in the Sales Tax and Fuel Levy,” despite the fact that petroleum prices had been raised “slightly.”
“This has impacted the Petroleum Levy budget of Rs. 152.5 billion between July-September 2021, as compared to Rs. 20 billion realized only,” it continued, claiming that the government was conscious of its “obligation” to offer assistance to consumers
The new gasoline rates are effective immediately and will be maintained for the following two weeks, according to the announcement. It claims that petrol prices have been increased by Rs. 8.03, pushing them to a new high of Rs. 145.82 a liter, up from Rs. 137.79. Similarly, high-speed diesel prices have increased by Rs. 8.14, to Rs. 142.62/liter, up from Rs. 134.48.
Kerosene prices have gone up by Rs. 6.27/liter, from Rs. 110.26 to Rs. 116.53/liter, while light diesel oil prices have gone up by Rs. 5.72/liter, from Rs. 108.35 to Rs. 114.07/liter.
Prices of all petroleum products have climbed beyond Rs. 110/liter for the first time in Pakistan’s history.
The Prime Minister’s Office published a statement on Nov. 1 saying that the prime minister had rejected an OGRA plan to raise gasoline prices in November “to bring relief to the people.” The administration had opted to prioritize “relief” above “passing on the effects of global inflationary pressures,” according to the report. This generosity was short-lived.
Prime Minister Imran Khan declared in a nationally broadcast speech on Nov. 3, barely three days after the prior announcement, that the government will “soon” raise gasoline prices since keeping them at present levels would increase the country’s fiscal imbalance. The administration acted on his warning on Friday morning.
Observers think the recent price increase is connected to the International Monetary Fund’s restart of a $6 billion Extended Fund Facility that had been paused. Shaukat Tarin, Adviser to the Prime Minister on Finance, said earlier this week that the government had no alternative but to raise petrol prices since the international lender would not allow it to subsidize the commodity for the general public.
