The coalition Government led by Prime Minister Shehbaz Sharif has increased increased the petroleum prices to a historic high to convince the the International Monetary Fund (IMF) for unlocking the critical loan tranche, hours after unveiling tax measures worth Rs170 billion.
The Finance Ministry has issued notification in this regard after approval of Prime Minister Shehbaz Sharif with the consultation with Finance Minister Ishaq Dar.
The price of petrol has been moved up to Rs272 per litre after an increase of Rs22.20, noting that the surge has taken place due to the rupee’s devaluation against the dollar.
The price of high-speed diesel has been increased to Rs280 per litre after a hike of Rs17.20. Kerosene oil will now be available at Rs202.73 per litre following a Rs12.90 hike. Meanwhile, light diesel oil will be available at Rs196.68 per litre after an increase of Rs9.68.
The new prices came into effect from 12am tonight.
|Product||Existing prices w.e.f 29/1/2023||New prices w.e.f 16/2/2023||Increase|
|High speel diesel||262.80||280||17.20|
|Light diesel oil||187||196.86||9.68|
The increase in the price of petroleum products was one of the preconditions of the IMF, which will lead to a hike in the already record-high inflation, coupled with the new fiscal measures undertaken through the ‘mini-budget’ today.
The Federal Board of Revenue (FBR) has issued an SRO, increasing the standard 17% general sales tax (GST) to 18%, for collecting taxes worth Rs115 billion, while the remaining Rs55 billion will be generated through other measures in connection with the Finance (Supplementary) Bill 2023 — or the ‘mini-budget’.