Price of diesel and gasoline in Pakistan has risen sharply
2023.01.29 05:56
Price of diesel and gasoline in Pakistan has risen sharply
By Ray Johnson
Budrigannews.com – After the removal of price caps this week, Pakistan’s ministry of finance announced on Sunday that gasoline and diesel prices would rise by 35 rupees ($0.1400) per liter.
The decision was made just a few days before a mission from the International Monetary Fund will visit Pakistan later this month to talk about the ninth review of the country’s current funding program, which has been stalled.
Following the government’s removal of price caps, which the IMF opposed, the Pakistani rupee lost close to 12% of its value last week.
At a press conference on Sunday, Finance Minister Ishaq Dar stated that he hoped the announcement would dispel social media rumors of a higher price hike or a shortage of gasoline. Due to the rising cost of energy on the global market, he stated, oil and gas authorities recommended the increase.
He stated:
“We will have to take into account the rise in international oil prices and the devaluation of the rupee.”
“This price increase is being done immediately to combat this,” according to the oil and gas regulatory authority, “who said there were reports of artificial shortages and hoarding of fuel in anticipation of price increases.”
Witnesses cited said the day before that residents lined up to fill up at some gas stations due to rumors that prices would soon rise.
The falling value of the Pakistani rupee will raise the cost of importing goods because Pakistan is experiencing a balance of payments crisis. Pakistan pays a lot of money to import energy.
With less than three weeks’ worth of import cover in its foreign exchange reserves, Pakistan is desperate to secure external financing and is facing an increasingly acute balance of payments crisis. A successful IMF visit is crucial for the country.
($1 = 250.0000 Pak. rup.)
