According to pledges made to the International Monetary Fund, the federal government has decided to raise the price of petroleum products in Pakistan by Rs19.95 per litre for the upcoming fortnightly review.
The new prices are now in effect right now.
The government was supposed to publish new rates on July 31, but instead chose to maintain or lower the existing rates in order to lessen the impact of the price increase on citizens who were already weary of inflation.
Dar, whose government's term ends on August 12 and this was his last announcement as finance minister, said the price increase was unavoidable since Pakistan and the IMF had agreed to add a petroleum development fee to the rates.
We made an effort to either cut back on or find ways to tweak how it operated. But everyone is aware of our agreements we have with the IMF about the petroleum development levy, said Dar.
According to the finance minister, if there had not been a deal with the IMF, the government would have decreased the PDL.
Dar declared that he would not follow the previous administration's actions, which included lowering the price of gas and breaking IMF agreements.
The finance minister explained that the government decided to raise local prices since the cost of high-speed diesel had increased dramatically on the international market.
The finance minister said, "Keeping in mind national interest, it is crucial that we pass on the minimum [amount] which has been calculated."
To guarantee the smooth operation of the $3 billion Standby Agreement, the IMF has imposed strict requirements. The accord includes the increase of the fuel tax to Rs. 60 per litre.