The Pakistan Muslim League-Nawaz led government on Friday notified a Rs. 26.77/liter increase to the prices of both petrol and high-speed diesel, effective from April 25 through May 1, citing volatility in global prices but hiking up taxes on petrol previously announced to remain static for a month.
Following the latest revision, petrol will cost Rs. 393.35/liter, up from Rs. 366.58/liter, while high-speed diesel will cost Rs. 380.19/liter, up from Rs. 353.42/liter.
In a televised statement on April 3, Prime Minister Shehbaz Sharif had announced a Rs. 80/liter cut to the petroleum development levy (PDL) on petrol, adding this would remain in place for the next month. However, the latest revision of prices had raised this same PDL by Rs. 26.77/liter, a week earlier than claimed by the premier.
The move comes a week after the government had maintained the price of petrol at Rs. 366.58/liter despite a global decline in fuel prices, while reducing the prices of diesel by Rs. 32.12/liter from its previous Rs. 385.54/liter. The government has admitted it is charging more from petrol consumers to offset relatively lower diesel prices, as the latter is considered inflationary due to its use in the transportation sector.
According to local media, the government is now charging roughly Rs. 135/liter in taxes on petrol and Rs. 65/liter on diesel. This includes PDL, customs duty, and the climate support levy.
The IMF’s executive board is expected to approve in the first half of May the disbursement of more than $1.2 billion under two ongoing programmes.
In a statement, Petroleum Minister Ali Pervez Malik claimed oil prices were once again rising the global market amid ongoing tensions between the United States and Iran. He said the government was compelled to pass on this additional burden to consumers in light of international commitments, an apparent reference to the International Monetary Fund (IMF). The global lender’s Executive Board is due to approve the next tranche of an ongoing $7 billion Extended Fund Facility for Pakistan early next month.
Malik further claimed the government had provided “historic” relief to the public to avoid burdening them for as long as possible.