SARAJEVO, Jan. 8 (Xinhua) -- Bosnia and Herzegovina (BiH) will raise retail prices of gasoline and diesel as of Feb.1, the first increase this year, the official gazette of BiH said Monday.

The increase in prices of gasoline and diesel was a condition given by the International Monetary Fund (IMF) in order to approve an extended financial arrangement of 148.4 million KM (90.6 million U.S. dollars) to BiH in the beginning of 2018.

The BiH Excise Law Bill, which was adopted in both BiH Houses of Parliamentary Assembly, came into force last week, and from Feb. 1, the prices will be adjusted at all gas stations in the country.

In this week, the average price of gasoline per liter in BiH is 2.01 KM while diesel is 1.88 KM. With the increase of retail prices of gasoline and diesel, BiH citizens will pay 0.15 KM per liter plus value-added tax, which amounts to 0.18 KM in total, BiH Foreign Trade Chamber official website said.

From Feb. 1, they will pay 2.19 KM for gasoline and 2.06 KM for diesel per liter, making BiH no longer a country with the cheapest fuel in the region. (1 KM = 0.61 U.S. dollars)