The Pakistan federal government has brought some respite to the citizens of the country by announcing a noteworthy drop in fuel prices for the first half of May 2023. High-Speed Diesel, Kerosene, and Light Diesel Oil have all witnessed a decrease in their prices, while petrol prices have remained unaltered. Islamabad, on Sunday, announced the reduction in prices which are applicable till May 15, 2023.
“Big relief for the public! The Government of Pakistan has announced a significant reduction in the prices of high-speed diesel (HSD) by Rs5 per liter, light diesel oil (LDO) by Rs10 per liter, and kerosene oil by Rs10 per liter for the next 15 days. Petrol prices remain unchanged,” according to a Tweet issued through an official account.
A look at the latest petroleum prices below effective May 1, 2023 to May 15, 2023:
Despite a significant decrease in international oil prices over the past year, fuel prices in domestic markets have risen. The devaluation of the Pakistan rupee and the necessity to generate revenue in the midst of an ongoing economic crisis are major contributors to the increase in fuel prices in the country.
The government has been raising fuel prices due to its lack of progress in securing a staff-level agreement (SLA) for the resumption of a stagnant International Monetary Fund (IMF) bailout. Additionally, the continual depreciation of the rupee and historically high food prices are exacerbating high inflation rates.
In the meantime, the United Arab Emirates has confirmed providing financial aid of $1 billion to Pakistan, thereby eliminating another obstacle that was hindering the cash-strapped nation's ability to obtain funds from the IMF.
Previously, the international organisation had mandated that Islamabad must procure $3 billion from other nations to revive its $6.5 billion bailout package.
With the necessary financial assistance secured, Pakistan is now poised to receive a tranche of $1.1 billion, which is vital for the country to address a severe balance of payments crisis. The disbursement of these funds, which was originally scheduled for November of last year, will occur once a staff-level agreement has been reached.