Miftah delivers third fuel price shock in 20 days.

ISLAMABAD -- The government raised fuel prices by up to 29 per cent on Wednesday, removing fuel subsidies in an attempt to trim the fiscal deficit and secure critical support from the International Monetary Fund (IMF).

This is the third cut in fuel subsidies in about 20 days. The prices of high-speed diesel (HSD), petrol, kerosene and light diesel oil (LDO) have gone up by a massive 83pc, 56pc, 73pc and 68.4pc, respectively, since May 26.

The ex-depot price of petrol now stands at Rs233.89 per litre, HSD Rs263.31, kerosene Rs211.43, and LDO Rs207.47.

Speaking at an unscheduled news conference with Minister of State for Petroleum Musadik Malik, Finance Minister Miftah Ismail said the price increase was inevitable 'to save the country from the default'.

Petrol, diesel to cost Rs24, Rs59 more, respectively; all fuel subsidies finally removed

The decision was not an easy one, as this would increase inflation and consequently add to people's miseries, Mr Ismail said but insisted that the previous government and challenging global market conditions had left no other option.

He said the prices of all products had now been brought to their purchase price and the element of subsidy or price differential claim had been eliminated. 'There is no more government loss on the sale of petroleum products,' he said, hoping to conclude an agreement with the IMF for reviving loan support.

The IMF wants Pakistan to take strict measures to control its fiscal deficit in the face of a balance-of-payments crisis.

According to the finance minister's announcement, the ex-depot price of HSD has been fixed at Rs263.31 per litre instead of Rs204.15, an increase of 29pc (or Rs59.16). The fuel's price has jumped 83pc since May 26 from Rs144.15 per litre.

The price of petrol (motor spirit) has also been increased by 11.4pc or Rs24.03 per litre to Rs233.79 from Rs209.86. The price of petrol has increased by 56pc from Rs149.86 per litre before May 27.

Likewise, the price of kerosene has been increased by 16pc or Rs29.49 per litre and fixed at Rs211.43 per litre instead of the existing rate of Rs178.31. Its price has skyrocketed 73pc since May 26 when it stood at Rs118.31.

Also, the ex-depot price of light diesel oil (LDO) has been increased by 16.33pc or Rs29.16 per litre and set at Rs207.47 instead of Rs178.31. Its price has also increased by 68.5pc from Rs125.56 per litre in May.

Mr Ismail said the decision of such a price hike was not easy for any finance minister or...