Rejects summary over increase in POL cost, says govt to absorb burden of Rs 56 billion, Rs 95 per liter of petrol, Rs 203 per death
ISLAMABAD:
Prime Minister Shehbaz Sharif said on Friday that the government had once again rejected a brief for a fuel price hike and would bear the burden of Rs 56 billion itself.
He addressed the nation about the ongoing conflict in the Middle East that has triggered a global fuel crisis.
The announcement comes a week after it said it rejected a Rs 76 per liter increase in petrol prices to HSD’s Rs 177 per liter increase. In the same case, the Prime Minister 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 brief seeking 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, which amounts to Rs 56 billion,” he said.
“This week, the federal government will absorb an additional burden of Rs 56 billion and the public will not have to bear this cost,” he added.
The prime minister said that based on prevailing prices in the international market, petrol should have been priced at Rs 544 per liter in Pakistan, but it is being supplied to consumers at Rs 322 per litre. Similarly, he said the price of diesel should have been Rs 790 per litre, but the government was supplying it at Rs 335 per liter to protect the public from additional burden.
Recalling the measures taken by the government so far to stabilize oil prices, the prime minister said that during the last three weeks, the government had single-handedly borne a historic burden of Rs 125 billion, so the public would not have to bear the cost.
“This amount could have been used to fund numerous important development projects for your well-being, but at this time nothing is more important to me than protecting your financial well-being,” he added.
Considering the current situation, he urged people to make transformative changes in their lives, advising them to think carefully before using cars or motorcycles. “Practicing 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 at petrol pumps as fuel costs became unaffordable for the public and governments struggled to cope.
“However, despite extremely limited resources, your government has so far managed, through timely and effective measures, to prevent this inflation storm from reaching you,” he said.
The prime minister urged the nation to join the government in implementing austerity measures, saying he could not do it alone.
“Today I make a sincere and sincere appeal to you, as fellow citizens, to cooperate fully with the plans we are formulating to face this difficult time. Detailed measures will be announced soon,” he added, hinting at the measures that the Government will announce in the coming days.
The Prime Minister said that while speaking, Pakistan was playing a very responsible and important role on two fronts. “On the one hand, we strive to safeguard our national interests and protect the population from the unprecedented increase in fuel prices on international markets; on the other hand, at the diplomatic level, we work day and night to establish peace.”
He said Pakistan was making sincere and vigorous efforts at the diplomatic level to mediate an end to the conflict so that the region and brotherly Islamic countries could avoid its devastating consequences.
The Prime Minister added that efforts were being made to pave the way for lasting peace through consultations and collective wisdom.
He said Pakistan’s diplomatic efforts were not simply official responsibilities but were carried out exclusively for the best interests of the Muslim community. “Therefore, regardless of what school of thought or sect we belong 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 purpose of these efforts was to pave the way for lasting peace through “collective wisdom and consultations.”
“Pakistan’s diplomatic efforts are not simply 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 irrespective of “what school of thought we belong to, as Muslims, we all wish for peace.”
In this context, he continued, he held detailed talks with the heads of Iran and the Gulf countries on multiple occasions. Besides, Deputy Prime Minister and External Affairs Minister Ishaq Dar also worked for the restoration of 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 ask you to pray for the fruit of these efforts,” 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 a two-year high.
In response to the crisis, both the federal and provincial governments have introduced a series of austerity measures. These include an extra weekly holiday, a reduction in free petrol allowances for ministers, restrictions on protocol vehicles and proposals to provide subsidized fuel to 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, raising 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 new increase cannot be ruled out,” he said.
The Prime Minister said prices had risen sharply again earlier this week and he had been advised to increase fuel prices again. However, he added that he had 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 a rise of Rs 127 per liter in petrol prices and Rs 252 per liter in high-speed diesel.
However, he added that this was not a sustainable solution and stated that the government would absorb the burden as much as possible to protect the public and provide relief to the poor.
