Pak hikes petroleum prices under IMF deal

Wednesday 06th July 2022 07:51 EDT

Islamabad: The Pakistan government has steeply hiked petroleum prices to implement the tough preconditions set by the International Monetary Fund (IMF) to revive the stalled $6 billion bailout package for the cash-strapped country.

Prices of all petroleum products went up by about Rs 14-19 per litre after the decision came into effect last week. According to a notification issued by the finance ministry, the government imposed a Rs 10 per litre petroleum levy on petrol and Rs 5 each on high-speed diesel (HSD), kerosene and light diesel oil (LDO). As a result, the per-litre price of petrol has been increased by Rs 14.85, HSD by Rs 13. 23, kerosene by Rs 18. 83 and LDO by Rs 18. 68. The ex-depot price of petrol now stands at Rs 248. 74 per litre, HSD at Rs 276. 54, kerosene at Rs 230. 26, and LDO at Rs 226.15.

Finance minister Miftah Ismail told the media that the petroleum levy was imposed to revive the IMF programme suspended four months ago after the previous government led by Imran Khan reneged from signed agreements. This is the fourth hike in petroleum under the incumbent government which took power in April.
The IMF has set tough preconditions like hiking electricity tariffs and imposing a levy on petroleum products to revive the bailout programme.

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