Petrol prices may rise by Rs32 per liter under IMF pressure

The International Monetary Fund (IMF) has asked Pakistan to increase the prices of petroleum products in line with international market rates and avoid giving subsidies on petrol and diesel, according to local media reports.

Officials said the IMF stressed that the government should pass the full impact of rising global fuel prices to consumers. This step is needed to keep Pakistan’s fiscal targets and budget commitments on track.

Reports suggest that the ex-refinery price of petrol could increase by up to Rs32 per liter by March 15 if the adjustment is made according to global prices.

The IMF has also told the government not to compromise on the target of collecting Rs1,468 billion through the Petroleum Development Levy (PDL) by June 30. During the first six months of the current fiscal year, the government has already collected Rs822 billion through this levy. More than 60% of this amount was collected between July and December.

Earlier, on March 1, the government increased petrol prices by Rs8 per liter for the next two weeks. According to an official notification, the price of petrol rose from Rs258.17 to Rs266.17 per liter.

The price of high-speed diesel (HSD) was also increased by Rs5.16 per liter, taking the new price to Rs280.86 per liter.