Earlier this month, the government increased the prices of petrol and diesel by Rs 55 per liter, citing the ongoing conflict between the United States, Israel and Iran.
Prime Minister Shehbaz Sharif speaks in a video address. – SCREENSHOT
Prime Minister Shehbaz Sharif addresses the nation on the ongoing conflict in the Middle East that has triggered a global fuel crisis.
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.
Read: The government will absorb the increase in oil prices of Rs49/liter
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.
