ISLAMABAD: The Pakistani government has reduced the prices of petrol and high-speed diesel by Rs9 per liter, Finance Minister Ishaq Dar announced late Saturday after the local currency gained some lost ground against the US dollar.
The South Asian country revises the prices of petroleum products every fortnight and has increased the rates over the last year to comply with tough conditionalities imposed by the International Monetary Fund (IMF) for a bailout package.
The increase in petroleum prices, along with global supply chain constraints and an economic meltdown, pushed inflation to historic highs in Pakistan, which eased to 29.4 percent in June for the first time in the last several months.
Finance Minister Dar announced late Saturday the government had decreased the price of petrol and high-speed diesel following the rupee’s gains against the greenback.
“In the international market... there was a decline in [the price of] one item and increase in the other,” he said in a televised address. “This has been compensated [by] the Pakistani rupee which has improved in the last 15 days.”
After the reduction in prices, a liter of petrol was now available for Rs253, while that of high-speed diesel was Rs253.5, the minister added.
The development comes amid some recovery in the value of rupee on the back of Pakistan’s $3 billion bailout deal with the IMF.
The greenback closed at Rs277.59 in the interbank market on Friday at the close of the weekend session.