Pakistan Raises Petro Price By Rs 30, Less Than A Week After Similar Hike

Pakistan government has announced another hike in the prices of all petroleum products by another Rs 30 — barely a week after making a similar increase in petrol prices. The hike comes into effect from June 3.

In the new scheme of things, petrol in Pakistan will be priced at Rs209.86, diesel Rs204.15, kerosene oil Rs181.94 and light diesel at Rs178.31. Only kerosene oil’s price was hiked by less than Rs30, according to a report publised in Pakistan English daily The Dawn.

“The government is still facing a loss of around Rs9 in petrol despite a hike of Rs30 as we are not collecting any tax on the fuel,” Finance Minister Miftah Ismail said. He added that the government was holding talks with the International Monetary Fund (IMF) on a daily basis, and although Pakistan “cannot accept all their demands but there are certain points that we have to agree to.”

The minister said the Pakistan government would ensure stability in prices of sugar and wheat at Rs70 per kg and Rs40 per kg respectively at utility stores countrywide and insisted the subsidy on petroleum products announced by ex-premier Imran Khan had to be withdrawn to avert financial losses.

“Irrespective of what the IMF says, the government cannot sell petrol and diesel at a loss,” he said, adding that the government was “willing” to import oil [from Russia], provided “it does not come with sanctions”.

The price hikes come 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 the resultant next year’s budget uncertainties.