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Petroleum Minister Ali Pervaiz Malik on Saturday clarified that petrol and diesel prices had been increased to meet International Monetary Fund (IMF) commitment, adding that rates would be lowered once global oil prices fall.
"While there was no major fluctuation in the global markets, we had to increase [diesel and petrol] rates by Rs14 due to our commitment," he said, during a televised address alongside Finance Minister Muhammad Aurangzeb.
However, he said that the government took timely measures to ensure the availability of the petroleum products across the country.
The petroleum minister's remarks come a day after the federal government hiked petrol and diesel prices by nearly Rs15 per litre each for the next week.
The price of petrol jumped from Rs399.86 to Rs414.78, while the HSD price increased from Rs399.58 to Rs414.58 per litre.
According to sources in the Petroleum Division, the petrol and diesel levy was raised by Rs13.91 per litre.
The levy on petrol increased from Rs103.50 to Rs117.41 per litre, while the levy on diesel jumped from Rs28.69 to Rs42.60 per litre, according to the sources.
Meanwhile, the petroleum minister stated that the government increased fuel prices to maintain the petroleum development levy (PDL) at levels agreed upon with the IMF prior to Pakistan's case being presented to the IMF board.
Malik, however, assured that the government would cut prices at a much faster pace once oil prices decline in the international market.
The IMF Executive Board reached a staff-level agreement on Pakistan's loan programme, unlocking $1.32 billion in fresh funding, the fund said on Friday.
The decision, which was confirmed by the finance minister, allows for an immediate disbursement of around $1.1 billion under the Extended Fund Facility (EFF) and around $220 million under the Resilience and Sustainability Facility (RSF).
It also gives Pakistan fresh support as it rebuilds reserves and tries to keep inflation in check, while meeting IMF demands to raise revenue and advance the privatisation of state-owned companies, the IMF said in a statement.
The lender, in an official statement, said that its board has completed the third review of Pakistan’s economic reform programme under the EFF and the second review under the RSF.
Speaking to Geo News following the IMF's announcement, Deputy Prime Minister and Foreign Minister Ishaq Dar said the approval of the tranche reflected the the global lender's confidence in the government's measures.
Dar said Pakistan's successful diplomacy had defeated India's opposition efforts. He added that the government would continue its reform programme and relief measures for the public.
