The federal government has increased petrol prices by Rs30 to a whopping Rs209.86 per litre in less than a week after it announced an Rs30 hike on May 27.
The price of high speed diesel (HSD) has also been increased by Rs30 per litre to 204.15.
The new prices take effect from June 3, tomorrow, Federal Finance Minister Miftah Ismail announced at a press conference.
At a press conference in Islamabad Thursday evening, Miftah Ismail claimed that the government was still offering Rs54 per litre in subsidy on diesel.
He also said that the government would provide subsidies on rice, ghee, and sugar for the entire year and would not impose new taxes in the upcoming budget, set to be announced on June 10.
But the government needs to end the subsidies, Miftah said.
The finance minister said the government would complete a host of reforms it had agreed with the IMF before presenting budget.
He said regardless of the IMF demand to remove fuel subsidies, the Pakistani government could not afford to buy expensive fuel and sell it on cheaper rate.
Ismail that fuel prices were so low in Pakistan that smuggling of fuel from Iran had stopped.