Finance Minister Ishaq Dar announced an increase of 35 rupees in the price of petrol and diesel on Sunday.
The finance minister said in a video speech: “That’s why we have received reports of artificial shortages in the market.” “
Dahl hoped the announcement would quell speculation that prices would rise and gasoline stocks would run out.
After the price hike, petrol will increase to Rs 249.80. High speed diesel is priced at Rs 262.80 per litre.
Mr Dar said that the price of kerosene and diesel has been increased by Rs 18, adding that the new prices will be implemented from 11 am today.
The price of one liter of kerosene is 189.83 rupees and one liter of diesel is 187 rupees.
He said that this increase was recommended due to the high cost of buying energy in the global market.
“We have to consider the international price of oil and the appreciation of the rupee,” he said.
Earlier, the Oil and Gas Regulatory Authority (OGRA) strongly denied speculations of petrol and diesel shortage.
Pakistan is expected to announce an increase in oil prices to meet some of the earlier conditions set by the International Monetary Fund (IMF) to revive a much-needed aid program.
The price hike comes as the Pakistani rupee depreciates sharply against the US dollar, falling more than 12 percent in just two sessions on Thursday and Friday.
Prime Minister Shabaz Sharif said on Friday that he hoped the critical IMF program would resume “this month.”
The IMF said its mission will visit Pakistan from January 31 to February 9 to continue discussions on the ninth review under the Extended Facility (EFF).
This was confirmed by IMF Resident Representative Esther Perez Ruiz to the Business Recorder on Thursday, when the rupiah depreciated by around 10 percent against the US dollar in the interbank market. The next day, the rupee fell another 2.7 percent.
IMF officials said the mission will focus on policies to restore stability at home and abroad. Restore the viability of the power sector and reverse the continued accumulation of circular debt. Restoring the proper functioning of the foreign exchange market and allowing the exchange rate to meet the foreign exchange shortage.
Pakistan is desperate for lenders to resume financial aid as it struggles to convince foreign reserves held by the National Bank of Pakistan (SBP) to drop from $923 million to just $3.7 billion, data released on Thursday showed.
This is the lowest level of SBP reserves since February 2014.
