Islamabad:
Prime Minister Shehbaz Sharif increased RS10 oil withdrawn on Saturday – an increase of 17% – to 70 rupees per liter, keeping the prices of fuel and unchanged diesel, while using the additional budgetary space available to reduce the prices of electricity by approximately 1.50 RS per unit.
Despite the increase, the old gasoline prices will have to stay at 255.63 rupees per liter, while high -speed diesel will remain at Rs258.64 per liter, according to officials of the Ministries of Finance and Energy.
The government has chosen not to transmit the reduction of world oil prices to consumers, which was to be due on March 16. The total arrection of electricity prices should exceed 1.50 Rs per unit, the Prime Minister providing for the recovery on March 23.
On the summary of the Ministry of Finance, the Prime Minister approved to increase the RS10 oil withdrawal rates by liter to RS70. The additional RS 10 per liter will be used to reduce the prices of electricity by approximately RS1.50 per unit.
“We have decided to maintain oil prices at their current levels and transfer all of the financial advantages to the public by reducing electricity prices,” said the Prime Minister.
The Prime Minister added that this measure is one of the many to achieve a significant reduction in electricity prices. “This step is among several others which will lead to a significant reduction in electricity prices.”
Residential consumers are obliged to pay more than RS65 per unit of electricity price – which is the direct result of RS18 per unit of payment of inactive capacity, a considerable cross subsidy being billed with users of more than 300 monthly consumption and the creation of the cost of ineffectiveness and theft in electricity rates.
The Prime Minister instructed his Minister of Power Sardar Awais Leghari to propose a tangible proposal to reduce prices of the order of RS6 to RS7 per unit.
The compromise between the prices of petrol and electricity is underway to solve a problem of high electricity bills, which harm all households and industry, said Federal Minister of Petroleum Ali Pervaiz Malik when speaking at L’Express PK Press Club.
Ali noted that if petrol in Pakistan was among the cheapest in the region, electricity was the most expensive, which the Prime Minister tries to rebalance.
L’Express PK Press Club reported on Saturday that the International Monetary Fund (IMF) had enabled Pakistan to increase oil withdrawal to 70 rupees per liter and use funds to reduce electricity prices. The tax has been increased to absorb price reduction.
The Prime Minister said that a complete and effective strategy was being prepared under which an electricity set is being developed to reduce electricity prices and that the details are finalized.
The government estimated that it earns around 180 billion rupees per year from the additional sample, which it will use to reduce the prices of electricity by approximately RS1.50 per unit.
Government representatives have said that the total reduction in electricity prices will be higher than this after taking advantage of the budgetary space due to the negative allegations for adjusting fuel prices for previous months.
The government has also tried to convince the IMF to reduce the rate of GST to electricity bills to reduce prices, but the fund did not agree.
According to a comparison of the government, at the parity of the US dollar, the price of gasoline in Pakistan is 91 cents, against $ 1.15 in India, $ 1.26 in Sri Lanka and $ 1.04 in Bangladesh. However, a key reason behind the highest price in dollars in neighboring countries is that their currencies are stronger compared to a lower rupe.
Likewise, the price of diesel in Pakistan in dollars is 92 cents while it is $ 1.03 in India, $ 1.12 in Sri Lanka and 86 cents in Bangladesh.
Pakistan’s per capita income is also lower than its regional peers, which limits the capacity of its citizens to pay high prices for fuel and electricity.
Petrol is mainly used in private transport, small vehicles, ripens and two-wheelers, and it directly affects the budget of the middle and lower middle classes. Most transport and agriculture sectors operate on high -speed diesel.
After the new increase, the total gas taxes increased to approximately RS86 per liter. The government will now charge RS70 per liter of petroleum withdrawal in more than 10% of accusing rights at the import stage.
The financial space created by changes in world oil prices and other measures will be used to provide significant relief to the public thanks to a reduction in electricity costs, said the Prime Minister.
He reiterated the commitment of his government to prioritize the assistance of the public since its entry into office.
According to the government’s decision, oil prices will remain the same until the end of the current month.
The price per liter of gasoline will remain at RS255.63, high -speed diesel RS258.64, rosene oil RS168.13 and light diesel oil at Rs153.34.
On the other hand, the work subject to the oil division by industry a few days ago showed relief from the price of petroleum products to Rs14.16 per liter in accordance with a reduction in world oil prices.
Industry works have shown that ex-petrol deposit-deposit-deposit could drop from RS14.16 per liter and the same for diesel should drop from RS8.70 per liter.
A reduction in reduction of RS10.33 per liter has been calculated in the price of kerosene oil while light diesel oil could have drops of Rs. 7.12 per liter.
