Ishaq Dar, the finance minister, announced a significant Rs19 per litre rise in the price of petrol and diesel on Tuesday. He stated that they made this move in the “national interest” according to an agreement with the International Monetary Fund (IMF).
Govt hikes petrol price: The new prices are now in effect right now. Instead of publishing new rates on July 31 as originally planned, the government chose to maintain or lower the existing rates. The purpose of this decision was to reduce the impact of the price increase on citizens who were already weary of inflation.
Dar, whose government’s term ends on August 12 and this was his last announcement as finance minister, said the rise was unavoidable since Pakistan and the IMF had agreed to add the Petroleum Development Levy (PDL) to the rates.
“…we looked for ways to cut back or change how it operated. But everyone is aware of our agreements we have with the IMF about the petroleum development levy, said Dar.
| Product | Existing prices w.e.f 16.07.2023 | New prices w.e.f 01.08.2023 | Change |
| Petrol | Rs253 | Rs272.95 | Rs19.95 |
| Diesel | Rs253.50 | Rs273.40 | Rs19.90 |
According to the finance minister, if the government hadn’t reached a deal with the IMF, it would have cut the PDL to provide the general public relief.
Dar stated that he would not follow the actions taken by the previous administration, which Dar claimed violated IMF agreements and reduced the price of petrol.
The finance minister explained that the government decided to raise local prices since the cost of high-speed diesel had increased dramatically on the international market.
The finance minister said, “Keeping in mind national interest, it is crucial that we pass on the minimum [amount] which has been calculated.”