Finance Minister Ishaq Dar told a press conference on Sunday that he hoped the announcement would put an end to speculation on social media about a price hike or cut in petrol supplies. He said the hike was recommended by oil and gas authorities because of the high cost of buying energy in the global market.
“We have to take into account the rise in international oil prices and the devaluation of the rupee,” he said.
“This increase is being done immediately on the recommendation of the Oil and Gas Regulatory Authority who said that there were reports of artificial shortage and hoarding of fuel in anticipation of the price increase – hence this price increase is being done immediately to counter it. “
The day before, witnesses reported that there were long queues outside some petrol stations as residents filled their tanks due to speculation that prices would soon rise.
Pakistan is facing a balance of payments crisis and the falling value of the Pakistani rupee will increase the prices of imported goods. Energy comprises a major portion of Pakistan’s import bill.