Khurram Dastgir, the federal Minister of Power, has stated that the government will raise the price of petroleum goods before June 30, 2022.
He said this on the Aaj News programme Rubaru with Shaukat Paracha, and noted that the government’s financial crisis has resulted in the anticipated hike in petroleum product prices.
Miftah Ismail, the federal minister of finance, announced a Rs. 30 per litre rise in the price of all petroleum products last week. In a news conference, he stated that a decision had been made to reach an agreement with the International Monetary Fund (IMF) on a staff-level accord, while expecting that the IMF would be willing to consider the revival of the Extended Fund Facility (EFF) of the World Bank.
With debt and import bills continuing to climb, the incumbent administration is focusing on restarting the $6 billion EFF programme to keep foreign currency reserves from eroding.
Minister Dastgir had stated that raising the price of petroleum products was important to reduce the country’s expanding current account deficit (CAD).
He alleged that the government has been losing Rs. 102 billion each month as a result of the fuel subsidies. He went on to say that Prime Minister Shehbaz Sharif had conferred with allies before deciding to eliminate the subsidy and enhance cash for public relief programmes.
The new pricing for petroleum commodities are as follows: petrol — Rs. 179.86 per litre; diesel — Rs. 174.15 per litre; kerosene oil — Rs. 155.56 per litre; and light diesel — Rs. 148.31 per litre, after the previous increase in prices.