Trying times for the public as the government proposes a Rs20 increase in petrol costs.

ISLAMABAD (Web Desk) – Citing growing commodity prices in the global market, Finance Minister Ishaq Dar announced a Rs19.95 per litre hike in fuel prices on Tuesday, triggering more inflation in the country at all levels.

Dar stated in a statement broadcast live by TV networks that the increase in high-speed diesel (HSD) would be Rs19.90 per litre, arguing that the government was obligated to respect the arrangement struck with the International Monetary Fund (IMF).

Any divergence will have bad ramifications for the country, he said, adding that the departing administration made the choice in Pakistan’s best interests. Prime Minister Shehbaz Sharif had asked them to impose the smallest possible cost on the people.

Petrol and HSD will now be available for Rs272.95 and Rs273.40 per litre, respectively, with the new rates taking effect immediately, boosting transportation costs for both persons and products to an unsustainable level.

Under the stand-by agreement between Pakistan and the IMF, the government is required not only to raise the Petroleum Development Levy (PDL) from Rs50 per litre to Rs60, but also to eliminate subsidies in order to decrease fiscal deficit, putting the people at the mercy of the market.

Constitutionally, it is the last fortnightly pricing review of the outgoing PML-N coalition government, whose tenure is slated to conclude on the 12th of this month. That’s why the administration was hesitant to make the statement scheduled for Monday (July 31) before 12 a.m. – a politically disastrous move considering that general elections are scheduled for October or November.

Dar stated in this regard that they attempted all available method of bringing assistance to the public while postponing the migration but couldn’t find any place for that.

People, however, do not think in terms of negotiations, numbers, international responsibilities, and market forces, as the recent increase in the price of petroleum goods did not occur in isolation.

In recent days, the government has also increased the base price of electricity as part of the IMF’s proposed energy sector reforms, which include reducing circular debt and, once again, minimizing subsidies, though the government claims that those consuming up to 200 units – estimated to be more than 65 percent of total consumers – will be unaffected by the decision.

Meanwhile, the Oil and Gas Regulatory Authority (Ogra) increased the rate for Sui Northern Gas by 50% and Sui Southern Gas by 42% on average – as utility and fuel costs rise in tandem.

Sui Northern gas customers would pay an extra Rs415.55 per MMBtu (Metric Million British Thermal Unit), while Sui Southern customers will pay an additional Rs417 MMBtu.