Pakistan increases petrol, diesel prices by 17% to control fiscal deficit

This will be the second time in a week Pakistan will slash the fuel subsidies in a bid to control the fiscal deficit and secure International Monetary Fund bailout money.

Updated on: Jun 2, 2022, 23:39:55 IST

By HT News Desk, New Delhi

Prefer HTon Google

Share via

Copy link

Pakistan increased petrol and diesel prices for consumers by 17 per cent at the pumps starting on Friday, finance minister Miftah Ismail announced. Both being raised 30 Pakistani rupees each per litre.

An attendant fills a vehicle with gasoline at a Shell Petroleum Ltd. gas station in Rawalpindi, Pakistan,  (Bloomberg)

This is the second time in a week Pakistan will slash the fuel subsidies in a bid to control the fiscal deficit and secure International Monetary Fund bailout money.

Ismail said there remained a subsidy of about 9 Pakistani rupees per litre, reported news agency Reuters.

The Dawn reported that after the latest round of hike, petrol will be priced at 209.86 PKR, diesel at 204.15 PKR, kerosene oil at 181.94 PKR and light diesel at 178.31 PKR. Only kerosene oil's price was hiked by less than 30 PKR.

On May 27, the Pakistan government increased the rate of petroleum products by 30 PKR per litre, or up to one-fourth of their existing prices.

The move is expected to help defuse the landmines laid by the government of former prime minister Imran Khan on the one hand, and will save the country from looming default on the other.

Ismail said the government was holding talks with the IMF on a daily basis, adding "we cannot accept all their demands but there are certain points that we have to agree to."

Ismail, however, said the government would ensure stability in prices of sugar and wheat at 70 PKR per kg and 40 PKR per kg respectively at utility stores countrywide.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Get the latest World News, breaking headlines and global updates from the US, UK, Pakistan, Bangladesh, Russia and other countries. Follow major international events on Hindustan Times.