At Rs 179 a litre, why have fuel prices sky-rocketed in Pakistan

New Delhi, May 27: The Pakistan government Thursday announced to increase the prices of petroleum products byRs 30 per litre, with the hike set to go into effect at midnight.

After the increase, the price of petrol will be atRs 179.85, diesel atRs 174.15, kerosene atRs 155.95 and light diesel atRs 148.41.

Finance Minister Miftah Ismail made the announcement at a press conference here, a day after the talks between the Pakistan government and the International Monetary Fund (IMF) in Qatar failed to reach an agreement on an economic bailout and the and the IMF staff-level agreement for the revival of the USD 6 billion programme ended.

"New prices will be effective from midnight," Ismail said.

The IMF in a handout on Wednesday emphasised upon "urgency of concrete policy actions, including removing fuel and energy subsidies".

Miftah said it has become indispensable to shift the fuel price burden on the masses as the IMF had refused to give "any relief" until the fuel subsidy was removed.

The previous Imran Khan government in February had capped the prices of petroleum products until June despite having an agreement with the IMF to increase the prices. When his government was removed in April, the new government needed IMF support but it was in fix over the issue of hiking the prices.

However, after the final refusal by the fund to release any funds until the prices were revised upward, the government took the bitter pill.

(PTI)