Caretaker govt jacks up petrol, diesel prices by up to Rs20 per litre

The caretaker government has increased prices of petroleum products by up to Rs20 per litre for the next fortnight amid a rise in global oil rates.

“Petroleum prices in the international market have increased during the last fortnight. As a result the consumer prices in Pakistan are also being revised,” the Finance Division said in a statement late Tuesday.

The petrol has been increased by Rs17.50 per litre while high speed diesel (HSD) hiked by Rs20 per litre.

The new fuel prices are effective from August 16.

Earlier on August 1, the former Pakistan Democratic Movement (PDM)-led government had announced a massive Rs19 per litre increase in the price of petrol and diesel, which it said was done amid rising global oil prices

The announcement was due on July 31, but the government did not issue new rates as the officials tried to maintain or reduce the rates — keeping in view the impact of the price hike on inflation-weary people.

Ishaq Dar, who made the announcement as the finance minister for the last time as his government's dissolved on August 12, said the increase was inevitable as Pakistan had agreed with the IMF on slapping petroleum development levy (PDL) to the rates.

The hike in the price of fuel particularly high-speed diesel will trigger further inflationary pressures in the country as it is widely used in the transport and agriculture sector.