Pakistan’s government has announced an increase in petrol and diesel prices for the upcoming fortnight, effective immediately. According to a statement from the finance ministry on messaging platform X, the price of petrol has risen by Rs9.99 to Rs275.60 per liter, while the price of high-speed diesel has increased by Rs6.18 to Rs283.63 per liter. These adjustments, the ministry stated, reflect fluctuations in the international oil market, with no changes to existing duties and levies.
Additionally, the government has raised the maximum limit of the petroleum development levy (PDL) to Rs70 per liter as part of its Finance Bill strategy, aiming to collect Rs1.28 trillion in the current fiscal year. This marks an increase from Rs960 billion collected in the previous fiscal year and surpasses the budget target by Rs91 billion.
These developments coincide with Pakistan’s recent agreement with the International Monetary Fund (IMF) on a $7 billion, 37-month loan program. The agreement includes stringent measures aimed at economic reform, which contributed to a record high in the benchmark share index on Monday.
One of the IMF’s key stipulations requires Pakistan to maintain power and gas tariffs at levels ensuring cost recovery, while adjusting to protect vulnerable sectors through progressive tariff structures. The prices of petroleum and electricity have been significant drivers of inflation in Pakistan, with petrol primarily impacting private transport and smaller vehicles, and diesel affecting heavier transport vehicles and food prices, including vegetables.
Related topics:
What Is In Gasoline That Makes A Car Run?
