In an attempt to appease the International Monetary Fund (IMF), the government has increased the price of petroleum products in Pakistan to a record high. A statement from the Finance division confirmed that the surge in the price of petroleum products in Pakistan has taken place due to the rupee’s devaluation against the dollar.
Current Price of Petroleum Products in Pakistan
As per details, the price of petrol has moved to Rs272 per liter after an increase of Rs22.20; while the prices of high-speed diesel have been increased to Rs280 per liter after a hike of Rs17.20. Light diesel oil will be available at Rs196.68 per liter after an increase of Rs9.68; meanwhile, kerosene oil will now be available at Rs202.73 per liter following an Rs12.90 hike.
With the price hike, the government also increased the petroleum development levy (PDL) on HSD by Rs5 per litre to Rs40. While, PDL was reduced on kerosene and LDO by Rs6 and Rs3 per litre, respectively. It must be noted that the increase in the price of petroleum products was one of the preconditions of the Washington-based lender for the completion of the ninth review of a $7bn loan program.
Expert Opinion
A senior economist with Moody’s Analytics told international media that inflation in Pakistan could average 33% in the first half of 2023 before trending lower. Another senior economist Katrina Ell said; “Our view is that an IMF bailout alone isn’t going to be enough to get the economy back on track. What the economy really needs is persistent and sound economic management.” She further added; “There’s still an inevitably tough journey ahead. We’re expecting fiscal and monetary austerity to continue well into 2024.”
Also read: Government Increased Petroleum Levy by Rs.15/liter Instead of Providing Relief to Consumers: Report
