Rejects summary of POL cost increase, says govt will absorb charge of Rs56b, Rs95/litre for petrol, Rs203 for matrix
ISLAMABAD:
Prime Minister Shehbaz Sharif said on Friday that the government had once again rejected a proposal to increase fuel prices and would absorb the burden of Rs56 billion itself.
He addressed the nation on the ongoing conflict in the Middle East that has sparked a global fuel crisis.
The announcement comes a week after he said he rejected an increase of Rs76 per liter in the price of petrol from Rs177 per liter in that of the HSD. In the same case, the Prime Minister had also said that he had rejected a similar recommendation earlier, following the rise in oil prices in the international market on March 13.
The prime minister said he had rejected a summary calling for an increase in oil prices and decided to keep them at the current level for another week.
“I was advised to increase the price of petrol by Rs 95 per liter and diesel by Rs 203 per litre, but I again refused in view of the difficulties faced by the people and decided that the government would bear the cost, amounting to Rs 56 billion,” he said.
“This week, the federal government will absorb an additional burden of Rs56 billion and the public will not have to bear this cost,” he added.
The Prime Minister said that based on the prevailing prices in the international market, petrol should have been sold at Rs 544 per liter in Pakistan, but it was being supplied to consumers at Rs 322 per litre. Similarly, he said the price of diesel should have been Rs 790 per liter but the government was supplying it at Rs 335 per liter to protect the public from additional burden.
Recalling the steps taken so far by the government to stabilize oil prices, the Prime Minister said that in the last three weeks, the government had borne a historic burden of Rs 125 billion alone, so that the public did not have to bear the cost.
“This amount could have been used to fund many major development projects for your well-being, but right now, nothing is more important to me than protecting your financial well-being,” he added.
Given the current situation, he urged people to make transformative changes in their lives, advising them to think carefully before using a car or motorcycle. “The practice of austerity is no longer optional; it has become our shared responsibility,” he added.
The prime minister said prices around the world had doubled, with long queues forming at petrol pumps, fuel prices becoming unaffordable for the public and governments struggling to cope.
“However, despite extremely limited resources, your government has managed so far, through timely and effective measures, to prevent this inflation storm from reaching you,” he said.
The Prime Minister urged the country to partner with the government to implement austerity measures, stressing that it could not do it alone.
“Today, I make a sincere and sincere appeal to you, our fellow citizens, to fully cooperate in the plans we are formulating to deal with this difficult period. Detailed measures will be announced soon,” he added, referring to the measures that will be unveiled by the government in the coming days.
The Prime Minister said that even as he spoke, Pakistan was playing a very responsible and important role on two fronts. “On the one hand, we are working to safeguard our national interests and protect the public against the unprecedented rise in fuel prices in international markets; on the other hand, diplomatically, we are active day and night to establish peace.”
He said Pakistan was making sincere and vigorous efforts at the diplomatic level to end the conflict so that the region and brotherly Islamic countries could be spared its devastating consequences.
The Prime Minister added that efforts were being made to pave the way for lasting peace through collective consultation and wisdom.
He said Pakistan’s diplomatic efforts were not mere official responsibilities but were undertaken solely in the best interest of the Muslim community. “Therefore, whatever school of thought or sect one belongs to, as Muslims, the desire for peace is shared by all,” the Prime Minister added.
The Prime Minister began his speech by talking about Pakistan’s efforts to restore peace in the Middle East through diplomacy.
“Pakistan is making sincere and comprehensive mediation efforts on the diplomatic front to end this war, so that the region and brotherly Muslim countries no longer face the destructive and negative consequences of this war,” he said. The Prime Minister further said that the aim of these efforts was to pave the way for lasting peace through “collective wisdom and consultation”.
“Pakistan’s diplomatic efforts are not just an international diplomatic responsibility, but are also purely for the will of Gold and the benefit of the Ummah,” he said.
Prime Minister Shehbaz said that whatever school of thought we belong to, as Muslims we all want peace.
In this context, he continued, he has repeatedly held in-depth discussions with the leaders of Iran and the Gulf countries. Besides, Deputy Prime Minister and Foreign Minister Ishaq Dar also worked towards restoring peace, while Chief of Defense Forces and Chief of Army Staff Field Marshal Asim Munir played an “active and key role” for the success of this rapprochement process, he added.
“I call on you to pray that these efforts will bear fruit,” the Prime Minister said.
Earlier this month, the government sharply increased diesel and gasoline prices by 55 rupees per liter, or 20 percent, citing the ongoing conflict between the United States, Israel and Iran, which has disrupted global supply chains and pushed crude oil prices to their highest level in two years.
In response to the crisis, the federal and provincial governments introduced a series of austerity measures. These include additional weekly holidays, a reduction in free petrol allowances for ministers, restrictions on protocol vehicles and proposals to provide subsidized fuel for students.
Last week, the government also approved a significant increase of Rs 200 per liter in the tax on high-octane fuel used in luxury vehicles, taking the total tax to Rs 300 per liter and the price to Rs 600 per liter.
Addressing the nation last Friday, the prime minister warned of a further rise in oil prices due to the war in the region, which has shaken the global economy.
“If the situation continues to deteriorate, the possibility of a further increase cannot be ruled out,” he said.
The Prime Minister said that prices increased significantly again at the start of the current week and he was advised to increase fuel prices again. However, he added that he decided not to do so out of a sense of responsibility and in view of the imminent Eidul Fitr.
He said the government had so far spent Rs 69 billion to prevent an increase of Rs 127 per liter in petrol prices and Rs 252 per liter for high-speed diesel.
However, he added that this was not a lasting solution, saying the government would absorb the burden as much as possible to protect the public and provide relief to the poor.
