The government of Pakistan has raised petrol and diesel prices significantly, effective May 1, amidst ongoing economic negotiations with the IMF. Petrol prices increased by Rs6.51 per litre, while high-speed diesel saw a rise of Rs19.39 per litre.
As of midday, the new price for petrol stands at Rs399.86 per litre and high-speed diesel at Rs399.58. This adjustment follows a virtual meeting between representatives from the IMF and Pakistan.
The price hike affects various sectors. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers. High-speed diesel mainly serves the heavy transport sector and large generators.
Officials from the Petroleum Division have refuted reports claiming that petrol stations would close due to fuel shortages. They stated, “There is no truth to reports of the closure of petrol pumps from May 1.” This assurance was echoed by Noman Ali Butt, vice chairperson of the All Pakistan Petrol Pump Owners Association (APPPOA), who added that “people should not pay heed to rumours. The petrol stations are open.”
The recent price adjustments align with Pakistan’s broader economic strategy to meet conditions set by the IMF, which includes setting a petroleum levy target of Rs1.468 trillion.
In light of these changes, consumers are likely to feel the impact on their daily transportation costs. The government has not provided specific timelines for further adjustments or discussions with the IMF.
