The government has increased the prices of petrol and high speed diesel by Rs 35 per liter. Pipa New

Islamabad: Finance Minister Ishaq Dar announced an increase of Rs 35 per liter in the prices of petrol and diesel from 11 am on Sunday.

The minister made this announcement in a brief televised address to the nation today and said that the prices of kerosene oil and light diesel oil have been increased by Rs 18 per litre.

Dar dismissed reports of petroleum shortage, alleging that an ‘artificial shortage’ was being created cotton diesel

“Enough fuel is available and under normal circumstances, there would be no reason for such a shortage,” he said.

“On social media, it was reported that [fuel prices] Rupees were to be increased to 47-80 which unfortunately became an incentive for them [hoarders]Because of this, we have received reports of artificial scarcity in the market,” he added.

It may be noted that on January 15, Dar had announced that fuel prices would remain the same for the remaining half of the month till January 31.

After today’s hike, petroleum is to be sold at Rs 249.80 per litre, while diesel prices stand at Rs 262.80 per litre, kerosene at Rs 189.83 per liter and light diesel oil at Rs 187 per litre.

As the country experiences severe inflation, Pakistan is expected to avoid default on its international payments after the International Monetary Fund (IMF) finally agreed to continue discussions under the ninth Extended Fund Facility (EFF) review. Is.

But the development came only after Prime Minister Shehbaz Sharif categorically stated that his government was ready to take all necessary decisions needed to revive the $6.5 billion IMF programme.

Of the four key prerequisites needed to revive the loan programme, the government has met the first by allowing market forces to determine the rupee-dollar exchange rate.

Accordingly, the local currency depreciated by Rs 24.54 (or 9.61%) to hit an all-time low of Rs 255.43 against the US dollar at the interbank market on Thursday.

The latest fall came after the government ended its control over the rupee-dollar exchange rate under four conditions put forward by the IMF.

Fahad Rauf, head of research at Ismail Iqbal Securities, said that “a sharp fall in the exchange rate could push up petroleum products (POL) prices by up to 50% in the coming weeks and months – if it persists at their current levels. Petroleum Development Levy is fixed at Rs 50/litre each on petrol and diesel, and 17% sales tax is also levied on POL products going forward.

Petrol price is expected to increase by 44% to Rs 309 per litre, while diesel price may increase by 50% to Rs 341 per litre.

Moreover, due to the rupee depreciating by about 10% against the greenback on Thursday, all imported goods will become costlier by an additional 10%. These goods would include food (wheat and wheat-flour, pulses and cooking oil), cotton for textiles, steel scrap and energy products (oil, gas and coal).

However, the rising price of essential commodities would hit the common man the most, especially people from the lower-income sections of the society who were already struggling due to the ongoing financial turmoil and political upheaval.