ISLAMABAD: Prime Minister Shehbaz Sharif Thursday announced a reduction of Rs18.50 per litre in the price of petrol and that of Rs 40.54 per litre in diesel keeping in view reduction in oil prices in the international market.

The petroleum prices have been reduced as part of the government decision to shift to the consumers the impact of the reduction in oil prices globally, the premier announced in his televised address to the nation.

Effective July 15 (Friday), the new price of petrol has been fixed at Rs 230.24 per litre against the previous price of Rs 248.74 per litre and that of diesel Rs 236 per litre against the previous price of Rs 276.54 per litre, according to a notification issued by the Finance Division.

Kerosene oil price has been reduced by Rs 33.81 per litre from Rs 230.26 to Rs 196.45 per litre and light diesel oil price has been reduced by Rs 34.71 per litre – from Rs 226.15 to Rs 191.44 per litre, the notification mentioned.

“We inherited a destroyed economy, massive inflation at home and oil prices were at peak in the international market,” the premier said.

He alleged that the former federal government signed an agreement with International Monetary Fund (IMF) but did not honour it. “They laid landmines for us. Reduced fuel prices during their last days in power despite that there was no money in the national kitty. They did all this to create problems for us,” Sharif alleged.

“There was no way out so tough decisions had to be taken. With a heavy heart, we had to increase the petroleum prices,” he said.

He also announced that the federal government reached an agreement with IMF – and credited Finance Minister Miftah Ismail and his team in this regard.

“God willing, this should be our last agreement with the IMF,” Sharif said.

The premier said lessons need to be learnt from massive delays in Neelum-Jhelum and Haveli Bahadur Shah projects that cost the national kitty dearly.

The federal government will focus on improving agriculture, information technology (IT) and export-based industry, he said, adding that the coalition government would guide Pakistan to success.