Keeps petroleum rates unchanged; Says govt to bear burden of increse in prices
Prime Minister Shehbaz Sharif on Friday rejected the Oil and Gas Regulatory Authority’s (Ogra) proposal for an unprecedented hike in the prices of petroleum products.
Speaking at an Iftar dinner for the new government’s coalition partners, Shehbaz said: “As you know, the prices of petroleum products are revised every 15 days. They had [proposed] an increase of Rs21 and Rs50 per litre.” He went on to say that the people of the country would “curse” the new government if such a “mountain of inflation” was unleashed on them. “What do the people know about what the previous government has done?” he asked, adding that the proposal for the price hike was rejected.
The premier said the government would bear the burden of an increase in prices instead of shifting it onto the masses. Meanwhile, a handout issued by the Finance Division also confirmed that there would be no change in the prices of petroleum products. Earlier, the OGRA had sent a proposal to the Finance Division to increase the price of petrol by Rs21.50 and diesel by Rs51.30 (based on existing/current petroleum levy and GST). According to the proposal, the OGRA had suggested an increase of Rs83.50 per litre of petrol and Rs119.88 per litre of diesel (based on the federal government’s advised petroleum levy of Rs30 and 17% GST).
In a press conference alongside ex-finance minister Miftah Ismail, PML-N leader Shahid Khaqan Abbasi claimed that no country in the world was selling petrol cheaper than its original cost.
Abbasi said the incumbent government was facing problems due to the former government’s mismanagement as they had set the price of petrol at Rs149, which burdened the national exchequer.
Due to the PTI government’s policy of keeping the petroleum products’ rates fixed, the remaining Rs35 billion was paid through the national exchequer.
“If the rates are kept the same till June, then the government will have to pay Rs240 billion through its own resources […] the rates were fixed by PTI to garner cheap publicity,” he said, while lashing out at the Imran Khan-led government’s to keep the rates fixed till the next budget.
Had PM Shehbaz accepted OGRA’s summary, then the rate of petrol would be at Rs265 and diesel Rs235, Abbasi said and noted that the previous government had fixed the rates despite promising the International Monetary Fund (IMF) that they would hike them.
