Business | Oil & Gas
Pakistan raises fuel prices by more than 17%
Government plans to pass on any increase to consumers from July and phase out subsidies entirely by end of year.
- Reuters
- Published: 00:07 July 22, 2008
Islamabad: Pakistan has increased fuel prices by more than 17 per cent in the wake of a surging global crude oil market.
The government reviews fuel prices every two weeks and the last increases were on June 29.
The price of petrol had gone up to Rs86.66 a litre from Rs75.69, while the price of light diesel oil was going up to Rs56.50 a litre from 49.05, the Oil and Gas Regulatory Authority said.
The biggest rise was for kerosene oil, which shot up to Rs58.37 from Rs49.73.
The pressure on oil and food prices pushed Pakistani inflation in June to 21.53 per cent, its highest level since the 1970s.
The government raised fuel prices by up to 10.70 per cent on March 1, the first increase since May 2006 despite sustained rises in global prices.
There have been several sizeable price increases since then.
A senior government official had said in June the new government planned to pass on any increase in world oil prices to domestic consumers from July and phase out subsidies on petroleum products entirely by the end of 2008.
Saudi Arabia has agreed to help the government cope with the challenges of unsustainable fiscal and current account deficits.
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