ISLAMABAD: Prime Minister Imran Khan on Monday rejected in the public interest a summary seeking increase in the prices of petroleum products. As such, the ex-depot prices of petroleum products would remain unchanged for the time being.

“The prime minister has rejected an energy ministry’s summary that recommended an increase in the price of petrol by Rs11 and diesel by Rs14 in the public interest”, the Prime Minister Office said in a statement.

The premier was quoted as saying that petroleum prices were increasing across the globe due to rising inflationary trends but the government of Pakistan will take every possible effort to protect the people of Pakistan from inflation. “Therefore, the prime minister has delayed the summary,” the PM Office statement said, adding the government will absorb the impact of higher international oil prices and try to safeguard the public from additional burden.

This meant the government has for the moment decided to deviate from its commitment with the International Monetary Fund (IMF) for increasing petroleum levy by Rs4 per month a day ahead of sixth review of the Fund’s programme virtually suspended since April last year.

Informed sources said the government would try to convince the IMF to delay application of additional petroleum levy for a fortnight given the inflationary pressures but could revert to follow the original schedule in case of adverse reaction from the fund authorities.

The government has been increasing petroleum levy and GST on an alternate fortnight basis in recent months as part of the dialogue with the IMF but had slightly reduced GST on major products on Jan 15 as well.

The rate of petroleum levy has gone up by Rs4 on the first of every month with the commitment with the IMF to take it to a maximum of Rs30 per litre.

As such, the ex-depot price of petrol would remain unchanged at Rs147.83 per litre and that of high speed diesel at Rs144.62 per litre.

The ex-depot price of light diesel oil at present is Rs114.54 per litre and the kerosene rate is Rs116.48 per litre.

Published in Dawn, February 1st, 2022