Pakistan has committed International Monetary Fund (IMF) to increase the oil prices by Rs 4 per liter to end the deadlock. The consumers will now face an increase in prices of petroleum products up to Rs 4 per liter effective from November 16.
Pakistan and IMF had entered into a deadlock over an increase in oil prices from Nov 1.
IMF wanted the government to increase the prices of petroleum products from November 1, 2021.
Prime Minister had turned down a proposal to increase prices of petrol by Rs 11.53 per liter from November 1, 2021.
Earlier, the government had made a massive increase in prices of petroleum products up to Rs 12.44 per liter from October 16.
The government had made a massive hike when it was negotiating loan terms with IMF.
The government had not increased the prices of petroleum products. It feared criticism from the masses and political parties.
Now, Pakistan had assured IMF hike prices of petroleum products up to Rs 4 per liter from November 16.
In a summary, Ogra had proposed increase the price of petrol by Rs 11.53.
It recommended an increase in the price of diesel by Rs 8.49, kerosene by Rs 6.29, and light diesel by Rs 5.72 from November 1.
Premier decided to maintain the prices of petroleum products in the national interest.
The Prime minister said that the government is giving priority to the relief of the people.
instead of shifting the burden of rising inflation to the people.
Pakistan is a net importer of petroleum products. An increase in oil prices in the international market impacts domestic prices.
Pakistani consumers also pay the cost of depreciation of the rupee against the dollar.
Diesel is available at Rs 134.48 per liter, kerosene Rs 110.26, petrol Rs 137.79, and light diesel oil (LDO) Rs 108.35 per liter.
Pakistan armed forces use kerosene oil in remote areas like the Northern part.
The people living in these areas also use it for cooking purposes where LPG is not available.
Transport and agriculture sectors use diesel. Fluctuation in its prices poses a direct inflationary impact on the life of the consumers.
Industry uses LDO. Motorbikes and cars use petrol that is an alternative to Compressed Natural Gas (CNG).