Hike in Petroleum Prices

Hike in Petroleum Prices

On Tuesday, Finance Minister Ishaq Dar announced a substantial Rs19 increase in petroleum product prices due to recent international market fluctuations.

The government thoroughly assessed the situation, considering ways to minimize the hike, which led to a delayed announcement.

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The matter was discussed with Prime Minister Shehbaz Sharif earlier that day, acknowledging their commitments with the IMF that limited the possibility of a smaller increase. Consequently, high-speed diesel (HSD) and petrol prices rose by Rs19.90 and Rs19.95 respectively, effective immediately.

While the government aimed to provide relief, they recognized the lack of control over international prices. The increase was based on Ogra’s final recommendation and the premier’s approval.

Challenges in Economy

Despite facing challenges in announcing the fortnightly adjustment, the government proceeded with a significant 17.5% increase in the producer price of liquefied petroleum gas (LPG) and a 13.5% raise in the LPG consumer sale price for August. The domestic cylinder price for LPG increased by Rs281.5.

During the process, the government faced difficulty in announcing a major price increase before leaving office.

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Minister Dar engaged extensively with Ogra officials to explore possibilities to avoid or minimize the impact of the increase.

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