In a televised address on Sunday morning, just minutes before the new rates went into effect, Finance Minister Ishaq Dar announced a Rs35 rise in the price of gasoline and diesel.
Dar revealed the price adjustment in the speech, which got underway at 10:50 and ended at 11:00, or ten minutes later.
He claimed that social media was replete with rumours of a Rs50 increase in the cost of gasoline and diesel. We have heard stories of manufactured shortages on the market as a result.
The price of petroleum goods has increased by 11% on the international market, he claimed, following the devaluation of the Pakistani rupee last week.
The minister highlighted that the price of gasoline did not increase in the previous four months, from October to January 29. In fact, he continued, kerosene and diesel costs have dropped.
"On the orders of Prime Minister Shehbaz Sharif, we have decided to raise the minimum price of these four products despite rising international prices and the depreciating currency
The price of petroleum goods has increased by 11% on the international market, he claimed, following the devaluation of the Pakistani rupee last week.
The minister highlighted that the price of gasoline did not increase in the previous four months, from October to January 29. In fact, he continued, kerosene and diesel costs have dropped.
"On the orders of Prime Minister Shehbaz Sharif, we have decided to raise the minimum price of these four products despite rising international prices and the depreciating currency.
"We've agreed to raise the cost of gasoline and diesel by 35 rupees. Kerosene oil and light diesel oil prices have increased by Rs 18, according to Dar, who also noted that the new pricing will take effect at 11 a.m. today.
The minister also anticipated that by announcing the higher rates, rumours regarding dwindling gasoline supply would be put to rest.
According to the oil and gas regulatory authority, there have been complaints of fuel being hoarded in advance of price increases and artificial shortages, thus this price increase is being implemented right away to address these issues.
The increase in gasoline prices, according to Fahad Raud, head of equities at Ismail Iqbal Securities, was "in line with expectations."
"Since it doesn't account for the most recent decline in the currency rate, this is merely a partial rise. Mid-February will bring another hike, he said.
The choice was made a few days before an IMF mission was scheduled to visit Pakistan later this month to talk about the ninth review of the nation's ongoing funding programme, which has stalled.
Following the relaxation of price restrictions that the government had set but that the IMF had resisted, the Pakistani rupee lost close to 12% of its value last week.
Due to the Pakistani rupee's sharp decline in value, the cost of imported commodities will increase even though the country is currently experiencing a balance of payments crisis. A significant portion of Pakistan's import bill is made up of energy.
Pakistan, which has less than three weeks' worth of import coverage in its foreign exchange reserves and is grappling with a deteriorating balance of payments problem, is dependent on a successful IMF mission.
Masses "crushed" by most recent price increase
Imran Khan, the head of the PTI and a former prime minister, criticised the increase in gasoline prices, claiming that the "imported government's" "complete mismanagement" of the economy had "crushed the masses and salaried class."
He tweeted, "With Rs200bn mini-budget, electricity and gas price hikes and 35% unprecedented inflation projected."
According to Asad Umar of PTI, the population is already tired of inflation. He concluded, "May Allah have mercy on these people and spare them from this punishment.
When the IMF mission visits Pakistan next week, according to former finance minister Shaukat Tarin, there will be another increase in fuel prices.
The PTI leader stressed to Bol News that the devaluation of the currency would affect all commodity prices.
"They haven't even increased the new price to include VAT. However, taxes would be included, he noted. "You will see the government will further hike prices when the IMF [mission] comes."
long lines at gas stations nationwide
Rumors of a significant increase in gasoline prices caused huge lines at the pump in several regions of the nation on Saturday before Dar's announcement.
According to reports posted on social media, the cost of gasoline and diesel was predicted to increase on February 1 by anywhere between Rs45 and Rs80.
Hassan, who was in line at a gas station, had said to Dawn, "We saw a news on social media that oil prices will go up due to the spike in the dollar's value and international petroleum rates."
According to Geo News, only 20% of Gujranwala's pump locations had gasoline available at the time, and serious shortages were also reported in Rahim Yar Khan, Bahawalpur, Sialkot, and Faisalabad.
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