3rd time's a charm?: Govt hikes price of petrol by Rs24.03, diesel by Rs59.16

The government announced a third hike in the prices of petroleum products in less than three weeks, as it looks to quickly appease the International Monetary Fund (IMF) that emphasised the termination of energy subsidies to revive its bailout programme.

The new ex-depot price of petrol is Rs233.89 per litre (after a hike of Rs24.03), and diesel is Rs263.31 (after a hike of Rs59.16).

The old price of petrol was Rs209.86 per litre while diesel was at Rs204.15 per litre.

IMF still has concerns over Pakistan budget: Miftah Ismail

After the increase, the new prices are as follows (change to take effect from midnight on June 16):

Petrol – hike of Rs24.03 – new price Rs233.89

Diesel – hike of Rs59.16 – new price Rs263.31

Kerosene oil – hike of Rs33.12 – new price Rs211.43

Light diesel oil – hike of Rs25.53 – new price Rs207.47

The increase, announced during a press conference by Finance Minister Miftah Ismail and State Minister For Petroleum Musaddaq Malik on Wednesday night, comes after the country unveiled a Rs9.5-trillion budget for 2022-23 aimed at tight fiscal consolidation in a bid to convince the IMF to restart much-needed bailout payments.

Post-budget press conference: Fiscal tightening on the cards

Earlier on Saturday, Finance Minister Miftah Ismail said that the IMF has expressed concern about the country's recently unveiled budget, but the government is confident it can make changes to satisfy the lender.

He said the IMF was concerned about fuel subsidies, a widening current account deficit, and urged the need to raise more direct taxes.

Govt announces another Rs30 increase in petrol price

Earlier, the government had raised fuel prices by Rs60 – Rs30 on two separate occasions – to fulfil a key condition hindering the resumption of the IMF programme.

The prices were hiked by Rs30 on May 26 and again on June 3. On June 3, Finance Minister Miftah Ismail said that despite the massive increase in the price of petroleum products, the government was still bearing losses.

The IMF programme has been on hold since 2021. Since assuming office, the current government has been engaged with the global lender to resume the stalled $6 billion bailout programme.

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