ISLAMABAD (Eshfak Mughal):- The coalition government led by Prime Minister Shehbaz Sharif has further increased the petroleum prices up to Rs.59/liter for revival of the stalled loan program of the International Monetary Fund.
Federal Minister Miftah Ismail and Senator Musaqad Malik has announced the new prices during emergency press briefing late night at Islamabad.
Finance Minister said that the government was not in a position to bear subsidies on petroleum products anymore.
Miftah said that the after third increase, the government has eliminated subsidy on petroleum products which was being upto Rs59 per liter. He further said that the government was paying Rs24/liter on petrol and Rs59/ liter on Diesel even after two increases.
He said that the government has decided to increase the prices of petrol by Rs.24/liter to Rs233 and Rs59/liter to Rs264. The new prices of Kerosene (SKO) has been increased to Rs. 211.43/Liter from Rs178/liter and Light Diesel Oil (LDO) would be Rs. 207.47/Liter from of Rs182 per litter.
He said that in May, this loss had gone past Rs120 billion — three times greater than running the expenses of the civil government, which amounts to Rs40 billion.
The Finance Ministry has issued a statement in this regard too. According to the statement, in the wake of rising petroleum product prices in the international market and exchange rate variation, maintaining the fuel prices at the subsidized rate is constantly increasing the fiscal deficit and current account gap besides putting pressure on country’s foreign exchange reserves.
Therefore, the Government has decided to consider the proposal of OGRA to increase the petroleum products prices. However, Petroleum Levy and Sales Tax have been kept at zero to provide relief to the end consumers.
New prices of petroleum products with effect from 16 June, 2022.