In response to the International Monetary Fund’s (IMF) emphasis on eliminating subsidies on petroleum items, Finance Minister Miftah Ismail announced Thursday a huge price increase for petrol and other petroleum products.
The government has decided to raise the price of petrol, diesel, kerosene oil, and light diesel by Rs30, beginning May 27, the finance minister stated in a press conference.
New Prices are:
- Petrol — Rs179.86
- Diesel — Rs174.15
- Kerosene oil — Rs155.56
- Light diesel — Rs148.31
Although the government was still losing money despite a large increase in petroleum product prices, its finance minister said he would soon reach a staff-level deal with the International Monetary Fund.
Staff-level agreement between Pakistan and the IMF could not be reached the day before because the Fund stated that there were deviations from agreed-upon policies.
However, in March, Imran Khan declared a subsidy on both petroleum products and electricity, and the present government is following the same policy.
The rupee would strengthen, financial markets would be more stable, and the economy would grow, according to the finance minister.
In response to a query, Ismail stated that inflation would rise unavoidably due to an increase in the price of petroleum goods. We may have taken a different course of action, but what was the alternative?
Ismail claimed that Khan had declared subsidies on petroleum items while his government’s term was drawing to an end, which was in direct opposition to the IMF arrangement.
“It’s our country, and we’re all in it together. It is impossible to afford [such subsidies] when they are three times the cost of running governments on a daily basis “The finance minister made a statement.
Ismail said that providing subsidies to those who own automobiles, businesses, and generators is a disservice to the nation’s poor.
Despite the rising price of commodities, he claimed, “we have provided subsidies on commodities at utility stores and are making sugar available at a lower cost than Imran Khan’s government.