ISLAMABAD: In response to a rise in global oil prices, the caretaker government has increased the price of petroleum products by up to Rs20 per litre for the next two weeks.
“Petroleum prices on the global market have increased over the past two weeks. “As a result, consumer prices in Pakistan are also being revised,” the Finance Division announced late Tuesday in a statement.
The price of petrol has increased by Rs17.50 per litre, while diesel has increased by Rs20 per litre.
New petrol costs pkr 290.45, an increase of 17.50 rupees. While, After a 20 rupee increase, the price of diesel has increased to 293.40 rupees.
Earlier on August 1, the former PDM-led government announced a massive Rs19 per litre increase in petrol and diesel prices.
The most recent increase in petroleum prices is likely to spark a fresh wave of inflation in August.
In May, inflation reached a record high of 38%. The State Bank of Pakistan (SBP) chose to maintain the key interest rate at 22%. Despite a nominal decline in inflation last month.
The Monetary Policy Committee (MPC) noted in particular that year-over-year inflation is likely to remain on a downward trajectory over the next 12 months, implying a substantial level of positive real interest rate.
The COVID-19 pandemic, the global energy crisis, and the record-breaking floods that submerged a third of Pakistan last year have exacerbated years of financial mismanagement in Pakistan.
Last month, however, Islamabad reached a $3 billion contingency agreement with the International Monetary Fund (IMF) that could provide temporary relief for Pakistan’s escalating foreign debt.
