ISLAMABAD: The government raised fuel prices by up to 29 per cent on Wednesday, removing fuel subsidies in an attempt to trim the fiscal deficit and secure critical support from the International Monetary Fund (IMF). This is the third cut in fuel subsidies in about 20 days. The prices of high-speed diesel (HSD), petrol, kerosene and light diesel oil (LDO) have gone up by a massive 83pc, 56pc, 73pc and 68.4pc, respectively, since May 26.
The ex-depot price of petrol now stands at Rs233.89 per litre, HSD Rs263.31, kerosene Rs211.43, and LDO Rs207.47.
Speaking at an unscheduled news conference with Minister of State for Petroleum Musadik Malik, Finance Minister Miftah Ismail said the price increase was inevitable “to save the country from the default”. Petrol, diesel to cost Rs24, Rs59 more, respectively; all fuel subsidies finally removed
The decision was not an easy one, as this would increase inflation and consequently add to people’s miseries, Mr Ismail said but insisted that the previous government and challenging global market conditions had left no other option. He said the prices of all products had now been brought to their purchase price and the element of subsidy or price differential claim had been eliminated. “There is no more government loss on the sale of petroleum products,” he said, hoping to conclude an agreement with the IMF for reviving loan support. The IMF wants Pakistan to take strict measures to control its fiscal deficit in the face of a balance-of-payments crisis. According to the finance minister’s announcement, the ex-depot price of HSD has been fixed at Rs263.31 per litre instead of Rs204.15, an increase of 29pc (or Rs59.16). The fuel’s price has jumped 83pc since May 26 from Rs144.15 per litre.
Source: dawn.com
