Pakistan may increase the petroleum products prices by Rs14 to Rs24 per litre amid the rise in the international oil markets, Business Recorder reported.
The decision would be taken by the next bi-monthly review (August 16-31). If approved, this would second massive hike in petroleum products after the outgoing government increased the fuel prices by nearly Rs20 per litre on August 1 amid a hike in rates in the international market.
Currently, the price of petrol in Pakistan is Rs272.95, while high-speed diesel costs Rs273.40 after a recent increase of Rs19.90. Lately, Pakistan has been raising fuel prices every 15 days.
The former finance minister, Ishaq Dar, explained on state media that despite wanting to help the people, the government’s hands were tied due to their involvement in the IMF program. Dar pointed out that they had previously reduced petrol prices by Rs30, but they couldn’t control the international price, which had risen significantly.
The cost of refined products has gone up by $13 per barrel to $111 per barrel, causing petrol prices to increase by $7 per barrel to $97 per barrel within the last two weeks.
The government imposes a petroleum levy of Rs55 on petrol and Rs50 per liter on high-speed diesel. This situation is likely to lead to high inflation in the financially struggling country.