Last Updated: February 16, 2023, 08:55 IST
People wait for their turn to get fuel at a petrol station in Peshawar, Pakistan January 30, 2023. REUTERS/Fayaz Aziz
The petrol price was increased by 22 rupees, while the diesel price was increased to 280 rupees per litre after a hike of 17.20 rupees
Pakistan on Wednesday increased the price of petrol to a historic height of PKR 272 per litre, while diesel price has been hiked by PKR 17.20 to PKR 280 per litre, inflicting more misery on people already battling hiked essential prices.
The Shehbaz Sharif government’s move comes hours after the country proposed raising Goods and Services Tax to 18 per cent to help raise PKR 170 billion in revenue to ease the economic crisis.
The petrol price was increased by 22 rupees, while the diesel price was increased to 280 rupees per litre after a hike of 17.20 rupees.
Kerosene oil will now be available at 202.73 rupees per litre following a 12.90 rupees hike. Moreover, light diesel oil will be available at 196.68 rupees per litre after an increase of 9.68 rupees.
The increase in fuel prices was one of the preconditions of the International Monetary Fund (IMF) for unlocking the critical loan tranche, which will lead to a hike in the already record-high inflation, coupled with the new fiscal measures undertaken through the ‘mini-budget’.
Inflation is expected to go up in Pakistan after the petrol hike, the ‘mini-budget’.
The prices of daily use items have also increased with milk costing PKR 210 per litre and chicken meat being sold at PKR 780 per kg.
The Pakistan government on Wednesday introduced Finance (Supplementary) Bill 2023 or the “mini-budget” in the National Assembly to raise Rs 170 billion in taxes by June this year to meet the prerequisites for unlocking the $1.1 billion IMF loan.
A senior economist with Moody’s Analytics said that the inflation in the country could average 33 percent in the first half of this year and added that the bailout by the IMF is unlikely to put economy back on track.
“Our view is that an IMF bailout alone isn’t going to be enough to get the economy back on track. What the economy really needs is persistent and sound economic management,” senior economist Katrina Ell told Reuters.
Read all the Latest News here
