Govt hikes petrol price by Rs6, diesel by Rs19

The government raised on Thursday the price of petrol by Rs6.51 per litre and that of high-speed diesel (HSD) by Rs19.39.

Following the increase, the price of petrol stands at Rs399.86 per litre and HSD’s at Rs399.58.

The Petroleum Division’s press release notifying the increase said the new prices would be effective from May 1.

Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of the middle and lower-middle class. High-speed diesel is mainly used in the heavy transport sector and for large generators.

Petrol and high-speed diesel are the major revenue spinners with their monthly sales of about 700,000 to 800,000 tonnes compared to just 10,000 tonnes of monthly demand for kerosene.

The latest price hike came after the a virtual meeting between the International Monetary Fund (IMF) and Pakistan’s representatives, during which the IMF was told that Pakistan was well placed to achieve the petroleum levy target of Rs1.468 trillion, sources told Dawn.

The sources said the two sides agreed to keep the primary balance target as sacrosanct and achieve it at all costs even if further cut in public sector development programme was required.

Payments to independent power producers would continue in line with payment schedules to ensure that no issue cropped up before the IMF executive board’s meeting on May 8 — which was being convened to approve the disbursement of more than $1.2 billion — the sources said.

‘No truth to reports of petrol stations’ closure’

Thursday’s price hike came as the Petroleum Division refuted reports claiming that petrol........

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