Home NewsCommodities News Pakistan govt lifts petrol, diesel prices by 35 rupees a litre By Reuters

Pakistan govt lifts petrol, diesel prices by 35 rupees a litre By Reuters

by WOOWinvest
0 comment
Pakistan govt lifts petrol, diesel prices by 35 rupees a litre By Reuters

© Reuters. Employees sit next to fuel pumps as they close the petrol station after running out of petrol, in Islamabad, Pakistan July 26, 2017. REUTERS/Caren Firouz/Files

(Reuters) – Pakistan’s ministry of finance announced on Sunday petrol and diesel prices would rise by 35 rupees ($0.1400) a liter after the country’s currency value plummeted this week when price caps were removed.

The decision came days before an International Monetary Fund mission will visit Pakistan later this month to discuss the stalled ninth review of the country’s current funding programme.

Last week, the Pakistani rupee lost close to 12% of its value after the removal of price caps that were imposed by the government but which were opposed by the IMF.

Finance Minister Ishaq Dar said at a press conference on Sunday he hoped the announcement would dispel speculation on social media of a higher price hike or that petrol supplies would run dry. He said the hike was recommended by oil and gas authorities due to the higher cost of buying energy in the global market.

“We will have to take the rise in international oil prices and the devaluation of the rupee into account,” he said.

“This rise is being done immediately on the recommendation of the oil and gas regulatory authority who said there were reports of artificial shortages and hoarding of fuel in anticipation of price rises – hence this price rise is being done immediately to combat this.”

The day before, Reuters witnesses reported some petrol stations had long lines outside as residents filled their tanks due to speculation that prices would soon rise.

Pakistan is in the midst of a balance of payments crisis and the plummeting value of the Pakistani rupee will push up the price of imported goods. Energy comprises a large part of Pakistan’s import bill.

A successful IMF visit is critical for Pakistan, which is facing an increasingly acute balance of payments crisis and is desperate to secure external financing, with less than three weeks’ worth of import cover in its foreign exchange reserves.

($1 = 250.0000 Pakistani rupees)

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy