By Staff Reporter
ISLAMABAD: The government left domestic fuel prices unchanged on Monday at the second consecutive fortnightly review under an IMF-backed pricing mechanism that links energy prices to international markets.
“I discussed with the Prime Minister Shahbaz Sharif, and it was decided that we will not change the prices of all four petroleum products, and they will remain the same till the November 15,” finance minister Ishaq Dar said at a news briefing in Islamabad.
The price of petroleum will remain at Rs224.80 per liter, high speed diesel at Rs235.30, light diesel oil Rs186.50 and Kerosene at Rs191.83.
However, the government has increased petroleum development levy on both petrol and diesel. Petroleum levy on motor gas has been increased to Rs 50 per liter from Rs 47 per liter. On high-speed diesel, the levy has been increased to Rs12.59 per liter.
The government’s fortnightly reviews consider international energy prices, the rupee’s exchange rate against the dollar and other factors.
The fuel price reviews are part of an International Monetary Fund’s bailout program signed in 2019.
The coalition government of PM Sharif, however, ignored rupee’s recent gains against the dollar to avoid a cut in domestic fuel prices. Rupee strengthened 3.3 percent in October, yet the government kept prices unchanged at a time when there was a mounting expectation that the domestic prices would be reduced amid heating political temperatures.
The government’s previous sharp increases in fuel prices revived the installed bailout package from the IMF, but the decision also eroded its popular support base on historically high inflation.
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