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Following the rupee's depreciation against the dollar, Finance Minister Ishaq Dar stated on Sunday that the price of petrol and gasoline will rise by Rs35 per litre starting today at 11 a.m.
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Dar also stated in a televised address that the rates of kerosene and light diesel oil had been raised by Rs18 per litre.
The rise comes after the rupee fell to a historic low versus the dollar as the unofficial limit on the greenback was lifted.
Following the depreciation of the rupee, there was widespread anticipation that the government will raise prices by more than Rs80.
People began flocking to gas stations amid such rumours, despite the Oil & Gas Regulatory Authority (OGRA) instructing them to cease circulating false and misleading information.
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In his speech, the minister recognised that speculation had caused artificial shortages in the market.
"We will have to take in mind the 11% increase in worldwide fuel costs," he stated.
Dar stated that rates were not raised once in the recent four months, from October to January 29. He went on to say that at this time, fuel and diesel prices were reduced by Rs19 or Rs20.
He stated that the prices of kerosene and light diesel oil have been reduced by Rs29 and Rs30, respectively.
"Despite the rupee's depreciation and the rise in foreign costs, it was decided that a minimum price would be raised on the instructions of Prime Minister Shehbaz," Dar stated. He hoped that the quick decision would put an end to rumours of a petrol scarcity.
In reaction, Imran Khan, Chairman of the Pakistan Tehreek-e-Insaf (PTI), blasted the "mismanagement" of the economy by the "corrupt and inept imported administration" that has hurried the public with the new price rise.
Total mismanagement of our economy by a corrupt & incompetent imported govt has crushed masses & salaried class with latest hike in petrol & diesel prices & Rs33/$ devaluation to Rs262.6/$. Elec & gas price hike & 35% unprecedented inflation expected with Rs200bn mini budget.
— Imran Khan (@ImranKhanPTI) January 29, 2023
"With the current spike in gas and diesel prices and the devaluation of Rs33/$ to Rs262.6/$, our economy has been completely mismanaged by an imported administration that is corrupt and inept. With a Rs200 billion mini-budget, electricity and gas prices would rise, and unprecedented inflation of 35% is projected "Khan said.
Kashif Chaudhry, President of the Central Organization of Traders of Pakistan, criticised the Rs35 increase in fuel and diesel prices, claiming that it will lead to inflation.
Chaudhry asked the government to reverse the price rise immediately.
Pakistan is experiencing a balance of payments problem, and the falling value of the Pakistani rupee would raise the cost of imported commodities. Energy accounts for a sizable portion of Pakistan's import cost.
A successful visit to the International Monetary Fund (IMF) is vital for Pakistan, which is facing an increasingly severe balance of payments crisis and is eager for external finance, with less than three weeks' worth of import cover in its foreign exchange reserves.
The OGRA will take action against gas stations
Meanwhile, OGRA authorities stated that individuals responsible for shutting down gas stations in several locations will face consequences. The licences of individuals who shut down the pumps will be suspended, according to officials.
According to the officials, the regulator is receiving assistance in this regard from the district administration via the provincial chief secretaries. They also stated that the situation will be rectified soon.
Some gas stations had large lineups outside the day before the increase as residents filled their tanks owing to expectations that prices will shortly climb.
