Petrol prices will remain unchanged for the time being as Prime Minister Shehbaz Sharif has rejected the Oil and Gas Regulatory Authority’s (OGRA) summary to increase the price of petroleum products.
Earlier, the OGRA had sent a proposal to the Finance Division to increase the price of petrol by Rs. 21.50 and diesel by Rs. 51.30 (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).
The notion of petrol prices increasing to such an extent certainly alarmed the public which is already facing inflationary pressures. Moreover, this year Pakistan faced record levels of increase in petrol. In February this year, petrol prices reached highest-ever levels.
As a result, the previous government faced alot of criticism from both the then Opposition and the public. On the other hand, it continuously maintained that the petrol prices in Pakistan were the lowest in the region.
Read more: Price of petrol in Pakistan lowest in the region
On the other hand, as the new government took over, there were fears that it too will increase the prices. However, Prime Minister Shehbaz Sharif rejected the proposal for hiking the prices of petroleum products and vowed to take steps for the people’s welfare.
According to details, Prime Minister Shehbaz Sharif’s administration left gasoline prices at Rs. 149.86 a litre and diesel at Rs. 144.15 per litre. These prices will remain so until June 2022.
Current government too going against IMF?
While the decision to keep the petrol prices unchanged may provide temporary relief for the public, it will also put Pakistan’s $6 billion loan program lifeline at risk. Even though the incumbent government vowed to work closely with the International Monetary Fund (IMF), the move to not increase the prices is the opposite of what the IMF suggested. Earlier, the IMF asked Pakistan to increase the petroleum development levy.
Decision to not increase petroleum prices is dangerous. Running Rs50/l subsidy on diesel is unsustainable. IMF could not agree on it.
I think petroleum prices will increase next week – once the cabinet is formed.— Ali khizar (@AliKhizar) April 15, 2022