Why Did Petrol Prices Increase On New Year’s?
While everyone was getting excited about the new year, the government took the excitement away with another hike in petrol prices. We did anticipate what was going to happen. But the price increase hurt just the same.
As per the old petroleum prices in Pakistan, petrol was at Rs. 140.82 per litre, diesel, light diesel, kerosene oil were at Rs. 137.62, Rs. 107.06 and Rs. 109.53, respectively.
After the government increased the rates, the new petrol price has gone up by 4 rupees and become Rs. 144.82.
The new diesel price is Rs.141.62 per litre, 4 rupees more than the old rate.
The new price of kerosene oil is Rs. 113.53 per litre, with an increase of 3.95 rupees.
The new price of light diesel oil is Rs. 111.06 per litre, 4.15 rupees more than the old rate.
The new prices are in effect from 1st of January till the 15th.
Govt’s Agreement with IMF
The government has increased the prices of petroleum and many other products under an agreement with the IMF (International Monetary Fund). The government has to hike the prices to revive the $6 billion IMF package. What that means is the government has to pay back the IMF loan during the remaining part of the current fiscal year. And that’s why they have to increase the prices.
According to a statement by the Finance Division, the government has reduced the sales tax on petrol and diesel and increased the petroleum levy to adjust the price changes.
Back in November, the Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin said during a press conference that the petroleum levy would go up by Rs. 4 each month. That, too, is under the agreement with the IMF.
By that rule, the petrol prices will go up every month. And that’s our government’s new year greetings to the public.