Earlier this month, the government increased petrol and diesel prices 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. —SCREEN CAPTURE
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 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.
Read: Government to absorb Rs 49 per liter oil price hike
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.
