ISLAMABAD: The federal government announced a hike of up to Rs18.68 per liter in the prices of petroleum products, raising them to their highest-ever price.
Petrol would now cost nearly Rs250 and diesel Rs276.54 per litre.
The new prices take effect at midnight on Thursday.
Finance Minister Miftah Ismail and Minister of State for Petroleum Musadik Malik addressed a press conference at shortly before midnight to justify the hike.
Miftah Ismail said that the government had no option but to increase the petroleum prices after the country reported a record deficit of over 5,000 billion.
He blamed the Imran Khan government for entering into an agreement with the IMF over fuel prices.
He said that according to the agreement, Imran Khan signed with the IMF the taxes on petrol and diesel would have been Rs70 per litre – including Rs30 PDL and Rs45 in GST at the rate of 17% — but the current government had only imposed a levy of Rs10 on petrol and Rs5 on diesel.
The finance minister also said that international oil prices have increased and the government had to pass on the cost to the consumers.
He said the government had revived the same IMF program that Imran Khan had signed up for, though it had been extended by $1 billion to $7 billion.
Musadik Malik said that the Imran Khan government had made changes to several laws including giving power to Ogra to increase natural gas prices.
He said the prime minister had instructed authorities to make public such documents.
