The government is considering increasing the price of gasoline weekly in a huge move: sources

According to Finance Ministry sources, the federal government is considering shifting the bi-monthly assessment of petroleum product prices to weekly.

The modification in the review procedure is a pre-condition of the International Monetary Fund (IMF) for the seventh and eighth reviews, according to sources, as cash-strapped Pakistan frantically seeks loans to replenish depleted foreign reserves.

According to the sources, the change will go into effect only if the federal cabinet approves it, as the administration intends to redistribute the benefit/burden of changes in world oil prices to the populace.

The price of petroleum goods is currently revised every 15 days, a decision made by the PTI government. Previously, the rates were revised every 30 days.

The news comes after the IMF’s Resident Representative for Pakistan, Esther Perez Ruiz, stated that Pakistan has completed the final precondition for the combined seventh and eighth reviews, which is an increase in the PDL (petroleum development levy).

The announcement comes after the government stated last week that the petroleum duty on petrol would be doubled from Rs10 to Rs20 per litre and diesel from Rs5 to Rs10 per litre for the first half of August 2022.

Following price revisions, fuel is currently available for Rs227.19 per litre. Previously, petrol in the country was sold for Rs230.34 per litre. The cost of high-speed diesel is Rs244.95 per litre.

Former Prime Minister Imran Khan signed a $6 billion bailout package in 2019, but it was frequently blocked after his government breached subsidy agreements and failed to significantly boost tax collection.

However, after a series of difficult moves, Shehbaz Sharif’s government ultimately reached an arrangement with the money lender last month.