Amer Hilabi—AFP
The Government of Pakistan on Wednesday raised the prices of all petroleum products for the next two weeks, reflecting an increase to the petroleum development levy (PDL) in line with its commitment to the International Monetary Fund (IMF).
In a notification issued by the Finance Ministry, the price of petrol was increased by Rs. 2.07/liter (0.85%) from Rs. 233.91 to Rs. 235.98/liter; high-speed diesel by Rs. 2.99 (1.22%) from Rs. 244.44 to Rs. 247.43/liter; kerosene by Rs. 10.92 (5.48%) from Rs. 199.4 to Rs. 210.32/liter; and light-diesel oil by Rs. Rs. 9.79 (5.1%) from Rs. 191.75 to Rs. 201.54/liter.
“The government has considered the recommendation to make partial increase in the prices of petroleum products in line with change in the international oil prices and fluctuation in the exchange rate,” read the ministry’s notification, adding that “petroleum levy has been kept at minimum in order to provide relief to the consumers.”
There has been a consistent increase to fuel prices for several months, with the government also raising the tariffs of petrol and light-diesel two weeks ago, but reducing rates for high-speed diesel and kerosene. A key reason for the sustained increase to the fuel tariffs is the government’s removal of all fuel subsidies in line with a commitment to the IMF for the revival of stalled bailout package.
The incumbent government claims the significant shock to consumers is a partial result of ousted prime minister Imran Khan announcing an unfunded fuel subsidy when his government was facing a vote of no-confidence. That subsidy was in violation of his government’s deal with the IMF, which stalled Pakistan’s Extended Fund Facility as a result, and imposed harsh prior actions on the incumbent government to revive it.
Under the IMF deal, the government must impose PDL on oil products to a maximum of Rs. 50/liter to generate Rs. 855 billion in revenue in the ongoing fiscal year.