Islamabad: (Staff Reporter) Finance Minister Ishaq Dar announced an increase of up to Rs.35 in petroleum prices with an immediate effect as Pakistan is scrambling to meet the conditions of the International Monetary Fund (IMF) for revival of much-needed loan program stalled since September last. Since Saturday night, people have been thronging to the petrol pumps to get refilled the tanks of their vehicles after reports surfaced about hike in petroleum prices.
According to the source, the prices of the petrol and diesel had been jacked up by Rs35 per litre each, taking the new prices to Rs.249.82 and Rs.262.80 respectively, he said. The price of kerosene oil surged to Rs189.93 per litre after an increase of Rs18 while the light speed diesel also witnessed as much increase with new price reaching to Rs.187 per litre.
As per details saying the government did not increase the petroleum prices in last four months, Ishaq Dar said the latest increase had been made in line with the 11 per cent hike in oil prices I the international market. He said the new petroleum prices will come into effect immediately on Sunday.
Earlier this week, the finance minister assured the IMF in virtual dialogues that the government will fulfill all conditions including increase in gas prices and petroleum development levy will be fulfilled.
Furthermore ready to fulfill all preconditions, government tells IMF
According to the source, the IMF has set preconditions including increasing the PDL on petroleum products, ending the electricity subsidy and fixing the exchange rate of dollar according to the market, whereas the inter-bank and open market differences should be eliminated.
Moreover the government has already allowed free floating of the exchange rate, causing historic devaluation of the rupee against dollar that would spark another wave of inflation in the country.
