The federal government on Wednesday raised petrol prices by Rs24.03 to Rs233.89 per litre in a third major price increase within 20 days.
A notification issued by Finance Division stated that prices have increased as rising world oil prices and exchange rate fluctuations.
“…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,” reads the notification.
Even after the increase, the notification added, “the levy for petroleum development levy and sales tax were maintained at zero.”
The new price of petrol is Rs233.89 per litre, a rise of Rs.24.03 compared to Rs209.86. The price of diesel has been raised from Rs59.16 to Rs263.31 per litre from Rs204.15. The price of kerosene oil went up from Rs29.49 to Rs211.43 per litre and that of light diesel (LDO) from Rs29.16 to Rs207.43 per litre.
They will be effective as of 16 June.
Miftah Ismail said the government is aware that the raise will lead to inflation, but the government was forced that the other option would have led to destruction.
“There will be a relief after the difficulties. We will control the inflation. But [at this time] we could have done nothing but pass on the price,” he said.
Ismail said the government is powerless to deal with rising oil prices.
Minister of State for Petroleum Musadik Malik said that the decision was taken with a heavy heart.