ISLAMABAD: Amid a surge in global oil prices, the caretaker government has implemented a substantial increase in the prices of petroleum products. As part of this adjustment, the price of petrol has risen by Rs17.50 per liter, while the cost of high-speed diesel (HSD) has been raised by Rs20 per liter.
This decision comes in response to the rise in international oil rates over the past couple of weeks. The Finance Division released a statement explaining that the adjustments in consumer prices in Pakistan are a direct reflection of the changes in the global market.
This move follows a previous significant increase in fuel prices that was announced on August 1 by the former government, citing the impact of rising global oil prices. The announcement was initially scheduled for July 31, but due to concerns about the potential impact on inflation, the government deliberated to mitigate the effect of the price hike on the public.
Ishaq Dar, who announced the previous increase as the finance minister, explained that the decision was inevitable given Pakistan’s agreement with the International Monetary Fund (IMF) to impose a petroleum development levy (PDL) on the rates.
The hike in diesel prices, especially high-speed diesel, is expected to contribute to inflationary pressures in the country, as it plays a crucial role in both the transportation and agriculture sectors.
