The government on Wednesday night declared an increase of price of petrol-related goods for the third consecutive time in a row since May 27. The government has announced the price of petrol at Rs. 233.89 The new price for diesel will be at Rs. 263.31 per liter.
The cost of gasoline has increased by an amount of Rs. 24.03 per liter. The price of diesel has raised by an amount of Rs. 59.16 per liter. The price of kerosene and light diesel oil have been also raised.
The announcement was made in the presence of Finance Minister Miftah Ismail during an announcement at a press conference, which was attended by the Minister of State Petroleum Musadik Malik the Information Minister Marriyum Aurangzeb.
This hike will take effect at 16 June, the cost of petrol will rise to the equivalent of Rs. 233.89 per litre, diesel will cost at Rs. 263.31 Kerosene oil is expected to be sold at an amount of Rs. 211.43 and the cost of diesel light will be the equivalent of Rs. 207.47.
In his press conference, the finance minister claimed that the government had no other choice other than to transfer the cost of international trade to consumers .
In an interview with an unnamed news channel Finance Minister Miftah Ismail declared that ending the petroleum product subsidies up to July was necessary to avoid the brink of bankruptcy. The minister stated that it was the International Monetary Fund (IMF) has demanded that the government stop granting subsidies for petroleum products.
Background of Increase in Price of Petrol
Accepting the demand from the IMF to end the subsidy for petrol, the federal government increased the cost of all petroleum-based products by 30 rupees. 30 per liter , on the 27th of May. This was followed by a second rise of Rs. 30 per liter, just a few days after.
Before the price hike of May 27, cost of high-speed diesel as well as petrol was at Rs. 149.86 and Rs. 144.15 per liter, respectively. The price for light diesel oil and kerosene was the equivalent of Rs. 125.56 and Rs. 118.31 per liter, respectively.
It is relevant to mention this that the Federal government set a goal to raise an amount of Rs. 7 billion from the petroleum development tax in the upcoming budget year of 2022-23.
At present, there is no tax being imposed for petroleum products. This is essentially meaning that the price of all petroleum-based products including diesel and petrol may go significantly higher if government decides to levy the levie. Read More…