Pakistan hikes prices of petroleum products by Rs 30 per litre, Check why?

Pakistan Petrol-Diesel price Hike: Giving a massive jolt to the citizens, the Pakistan government on Thursday announced an increase in the prices of petrol and petroleum products by Rs 30 per liter. This hike has come into effect from midnight. It is said that the reason for this huge increase is the International Monetary Fund (IMF) agreement.

The government hiked fuel prices so that it can resume receiving aid from a $6 billion package signed with the International Monetary Fund (IMF) in 2019, the country`s finance minister Miftah Ismail said. The prices have increased by 20%.

The gigantic price hike comes a day after Prime Minister Shehbaz sharif-led Pakistan government failed to reach an agreement with IMF on an economic bailout, largely due to economic instability in the country. The Finance Minister's tweet informed about the increase in the prices of petrol-diesel and kerosene oil. In Pakistan, now the new price of petrol has reached Rs 179.86 per liter and diesel at Rs 174.15 per liter and kerosene will be available for Rs 155.95 per liter.

"Government has decided to increase the prices of Petrol, High Speed Diesel, Kerosene Oil and Light Diesel Oil by Rs 30 per litre from Friday May 27, 2022. New prices will go into effect at midnight. The new price of petrol will be Rs 179.86 & diesel will be Rs 174.15 per litre," Finance Minister Mifta Ismail tweeted on May 26 around 10:30 PM.

Government has decided to increase the prices of Petrol, High Speed Diesel, Kerosene Oil and Light Diesel Oil by Rs 30 per litre from Friday May 27, 2022. New prices will go into effect at midnight. The new price of petrol will be Rs 179.86 & diesel will be Rs 174.15 per litre.

— Miftah Ismail (@MiftahIsmail) May 26, 2022

Reuters reported earlier on Thursday that the IMF and Islamabad had reached a deal to release over $900 million in funds, once Pakistan removed the fuel subsidies and hiked prices, according to a Pakistani source directly involved in talks in Qatar.

"When we raise fuel prices, the deal will be done. We have worked out the outlines of a deal," the source said in a text message after the end of the talks in Doha.

According to Reuters, the price hike has been the main issue between Pakistan and the IMF as part of an agreement to withdraw subsidies in the oil and power sectors to reduce the fiscal deficit before the annual budget is presented next month.

(With the input of Reuters)