Ishaq Dar announces Rs19.95 per litre increase in the petrol price & Rs 19.90 per litre in high speed diesel price
ISLAMABAD, August 01 (SABAH): Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Tuesday announced Rs19.95 per litre increase in the petrol price and Rs 19.90 per litre in high speed diesel price.
In a message aired live by TV channels, Ishaq Dar said as he argued that the government was bound to follow the deal reached with the International Monetary Fund (IMF).
Any deviation would have negative consequences for the country and the outgoing government took the decision in Pakistan’s interest, he said, adding that Prime Minister Shehbaz Sharif had directed them to pass on minimum possible burden to the masses.
With the new prices coming into effect with an immediate effect, petrol and HSD will now be available for Rs272.95 and Rs273.40 per litre respectively.
Under the stand-by agreement between Pakistan and the IMF, the government is not only bound to increase the Petroleum Development Levy (PDL) from the present level of Rs50 per litre to Rs60 but also do away with the subsidies to reduce fiscal deficit, leaving the people at the mercy of market.
Ishaq Dar said they tried to work out all the available means for providing relief to the masses while delaying the move but couldn’t find any room for that. The revised prices have come into effect immediately. He said that the petrol and diesel prices have been increased with the approval of PM Shehbaz Sharif.
The announcement was due on July 31, but the government did not issue new rates as the officials tried to maintain or reduce the rates — keeping in view the impact of the price hike on inflation-weary people.
Ishaq Dar, who made the announcement as the finance minister for the last time as his government’s term ends on August 12, said the increase was inevitable as Pakistan had agreed with the IMF on slapping petroleum development levy (PDL) to the rates.
“…we tried to either reduce or see what could be adjusted in its working. But we all know about our commitments with the IMF on the petroleum development levy,” Ishaq Dar mentioned.
The finance minister said the government, had it not been in an agreement with the IMF, would have reduced the PDL to provide relief to the masses.
Ishaq Dar said he would not resort to moves that the previous government did as it decreased the petrol price and breached the commitments made with IMF.
The finance minister mentioned that the price of high-speed diesel had moved up significantly in the international market, resulting in the government’s decision to hike local rates. “Keeping in mind national interest, it is crucial that we pass on the minimum [amount] which has been calculated,” the finance minister added.
The finance minister said that the price of high speed diesel (HSD) and petrol in the international market had increased over the last 15 days.