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Saturday December 03, 2022

Petrol price to be fixed weekly under IMF conditions: sources

The step is being taken to pass on the impact of oil’s international prices to consumers immediately, say sources

By Web Desk
August 04, 2022
Government is all set to revise the prices of petroleum products on a weekly basis. Photo: file
Government is all set to revise the prices of petroleum products on a weekly basis. Photo: file  

ISLAMABAD: As part of its efforts in getting stalled $6 billion IMF bailout package revived, the Pakistan government is all set to revise the prices of petroleum products on a weekly basis, which was one of the preconditions for the release of the amount to Islamabad, said sources in Finance Ministry.

Earlier, the prices of petroleum products were revised by the government on a fortnight basis.

The step is being taken to pass on the impact of oil’s international prices to consumers immediately, say the sources.

A final decision in this regard will be made in the next federal cabinet meeting.

It is pertinent to mention here that the fuel prices were revised on monthly basis in the country but the PTI-led government had reduced the period to a fortnight.

All prior conditions met

Pakistan has fulfilled all the prior actions for the combined seventh and eighth reviews for the revival of the $6 billion loan programme, according to a statement by IMF Resident Representative in Islamabad Esther Perez Ruiz on August 2.

The IMF official said that the country increased the petroleum development levy (PDL) on July 31 as per the agreement reached with the Washington-based lender.

The federal government had revised the prices of petroleum products for the next fortnight from August 1, increasing the PDL on petrol by Rs10-20 and diesel by Rs5-10 per litre.

IMF Pakistan chief Esther Perez Ruiz said that the Fund’s Executive Board meeting will be held at the end of August if adequate funding is assured to Pakistan.

The IMF approval is subject to assurances of funding of $4 billion from Pakistan's friendly countries, sources said.

Pakistan had reached the staff-level agreement with the IMF earlier this month amid the country’s dwindling forex reserves and a worsening economy.

The delay in the revival of the loan programme coupled with political uncertainty has sparked fear of default, however, Finance Minister MIftah Ismail had assured the nation multiple times that the financing needs are met.