Amid economic turmoil, Pakistan hikes up fuel prices

Cash-strapped Pakistan has announced a 35 rupees increase in the prices of petrol and diesel.

Finance Minister Ishaq Dar said at a press conference on Sunday that petrol price will rise by 35 rupees to 249.80 rupees ($1) per litre while high-speed diesel will go up to 262.8 rupees ($1.05) per litre.

The announcement was made just 10 minutes before the new prices went into effect at 11am (05:00 GMT).

The decision came just days before an International Monetary Fund (IMF) visit to the country to discuss the stalled ninth review of Pakistan’s funding programme.

“We will have to take the rise in international oil prices and the devaluation of the rupee into account,” Dar said. “This rise is being done immediately on the recommendation of the oil and gas regulatory authority who said there were reports of artificial shortages and hoarding of fuel in anticipation of price rises – hence this price rise is being done immediately to combat this.”