The government late on Wednesday announced an increase in the prices of petroleum products for the third time since May 27. The government has set the new price of petrol at Rs. 233.89, while the new price of diesel will be Rs. 263.31 per liter.
The price of petrol has been increased by Rs. 24.03 per liter, the price of diesel has been increased by Rs. 59.16 per liter, the price of kerosene oil and light diesel oil has also been increased.
The decision was announced by Finance Minister Miftah Ismail in a press conference flanked by Minister of State for Petroleum Musadik Malik, and Information Minister Marriyum Aurangzeb.
With this hike, starting from June 16, the price of petrol will be Rs. 233.89 per litre, diesel will be Rs. 263.31, kerosene oil will be sold for Rs. 211.43, and the price of light diesel oil will be Rs. 207.47.
Addressing the press conference the finance minister said the government had no choice but to pass on the impact of international prices to consumers .
Speaking to a private news channel recently, Finance Minister Miftah Ismail had said that abolishing the subsidies on petroleum products till July was imperative to prevent the country from bankruptcy. The minister said the International Monetary Fund (IMF) has asked the government to withdraw subsidies on petroleum products.
Giving in to the insistence of the IMF to abolish the subsidies on petroleum products, the government had raised the prices of all petroleum products by Rs. 30 per liter on May 26. This was followed by another hike of Rs. 30 per liter merely days later.
Before the increase on May 26, the price of petrol and high-speed diesel was Rs. 149.86 and Rs. 144.15 per liter, respectively. Similarly, the price of kerosene and light diesel oil was Rs. 125.56 and Rs. 118.31 per liter, respectively.
It is pertinent to mention here that the federal government has set a target to collect Rs. 750 billion on account of the petroleum development levy in the next fiscal year 2022-23.
Currently, no levy is being charged on petroleum products, which essentially means that the prices of all petroleum products including petrol and diesel could get a lot higher if the government decides to collect the levy.