According to some reports on Friday, the federal government is expected to announce new petrol prices in Pakistan at midnight today. Some reports speculate that the prices may rise to around Rs430 per litre.
Reports say that the government is facing pressure from the International Monetary Fund (IMF) to pass on the impact of rising global fuel prices to the public after receiving a loan tranche of $1.32 billion.
In the previous review, the government increased the Petroleum Development Levy (PDL) on petrol to Rs117.41 per litre.
Reports further add that the IMF is also asking the government to impose a fixed levy of Rs160 per litre on all fuel products to help in reducing the fiscal deficit. If this does happen, petrol prices could increase even more.
As of present, the petrol prices in Pakistan are priced at Rs414.78 per litre. While high-speed diesel is being sold at Rs414.58 per litre.
If the reported increase is approved, petrol and diesel prices might reach a record Rs430 per litre.
However, the final decision will be taken by the Ministry of Finance after consultation with the Prime Minister (PM) of Pakistan, Mian Muhammad Shehbaz Sharif.
Petrol prices likely to go up
Petrol and diesel prices in Pakistan are likely to increase again this week as the federal government reviews fuel prices following a sharp rise in global crude oil prices.
The possible hike comes only days after the government raised petroleum prices following the approval of a $1.3 billion tranche by the IMF.
A fresh hike in fuel prices could further intensify inflationary pressure across the country, as increases in petrol and diesel costs usually lead to higher transportation and commodity prices.
Last week, Prime Minister Shehbaz Sharif approved an increase of Rs15 per litre in diesel prices and Rs14.92 per litre in petrol prices.
