ISLAMABAD – Finance Minister Ishaq Dar on Tuesday declared an increase in the petrol price by Rs19.95 per litre, bringing it to Rs272.95 for the upcoming fortnightly review.
He stated that this decision was made in the interest of the nation. The announcement, which was scheduled for July 31, was delayed as the government considered the potential impact on inflation-burdened citizens and sought to maintain or reduce the rates.
This marks the last time Dar will make such an announcement as his government’s term concludes on August 12. The price hike was deemed unavoidable, as Pakistan had previously agreed with the IMF to apply a petroleum development levy to the rates.
Dar stated that, “We attempted to explore options for either reducing or adjusting its operation. However, we are bound by our commitments with the IMF regarding the petroleum development levy.”
The finance minister acknowledged that if the government were not obligated to the IMF, they would have considered lowering the PDL.
Dar emphasised that he would refrain from following the previous government’s approach of decreasing petrol prices, which led to failure in meeting IMF commitments.
The finance minister pointed out that the international market had witnessed a significant increase in the price of high-speed diesel, which led to the government’s decision to raise local rates.
“With the national interest in mind, it is imperative that we implement the calculated minimum [amount],” added the finance minister.
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