Following the devaluation of the rupee against the dollar, Finance Minister Ishaq Dar Sunday announced sudden increase in the prices of petrol and diesel by Rs35 per litre immediately.
In a televised address, Dar also announced that the prices of kerosene oil and light diesel oil have been increased by Rs18 per litre.
The increase comes after the rupee hit a historic low against the dollar following the removal of the unofficial cap on the greenback.
The new prices after increase are petrol Rs249.80 per litre, high-speed diesel Rs262.80 per litre, kerosene oil Rs189.83 per litre, and light diesel oil: Rs187 per litre.
Following the devaluation of the local currency, there was widespread speculation that the government may increase the prices by over Rs80.
Amid such rumours, people started rushing to petrol stations with the Oil & Gas Regulatory Authority (OGRA) advising people to stop spreading misleading and incorrect information.
The speculation was one of the reasons that the government had increased the prices of petroleum products immediately.
Dar shared that OGRA had requested Prime Minister Shehbaz Sharif and the government to implement the new rates on an immediate basis to prevent the temporary hoarding and the speculations about the shortage of petrol. The minister admitted in the address that the speculations had led to artificial shortages in the market.
“We will have to keep in view the 11% increase in petroleum prices in the international market,” he said. Dar said that in the last four months, from October to January 29, the prices were not increased once. He added that in fact, petrol and diesel prices were decreased by Rs19 or Rs20 during this period. He said that the kerosene oil and light diesel oil prices were decreased Rs29 and Rs30.
“Despite the rupee devaluation and the increase in international prices, it was determined that a minimum price would be increased on the directions of PM Shehbaz,” said Dar. He hoped that the immediate decision would dismiss the rumours about the shortage of petrol.
Meanwhile, OGRA officials said that action would be taken against those who have shut down petrol pumps in some cities. The officials said that the licenses of those closing the pumps would be suspended.