The public is about to be hit with a massive fuel price hike Ministry of Finance and Petroleum are considering abolishing subsidies on petrol following the regime change. Finance Minister Miftah Ismail recently pointed out that the subsidy allowed on petrol for May and June would cost Rs. 96 billion, which the government cannot bear.
A week ago, Oil and Gas Regulatory Authority (OGRA) recommended an increase in prices of high-speed diesel (HSD) by Rs. 119 per liter, and of petrol by Rs. 83.50 per liter. Prime Minister Shehbaz Sharif decided not to approve that increase because of “political consideration”.
However, now, the petroleum division is considering reversing that decision. An official source told the media that the government is planning to increase petrol and diesel by a flat Rs. 20 per liter and then periodically increase the prices and remove the subsidy unless the global prices witness a significant drop.
Miftah Ismail and Shahid Khaqan Abbasi have gone on record to announce that the subsidy will be ending soon as the current international prices are too high.
Miftah pinned the blame on the previous government for the upcoming price hikes against petroleum products. He stated that:
By not taking tax on petrol and diesel, Imran Khan has put the Shehbaz Sharif-led government in trouble. Making petrol cheap is not a favor, it is the nation’s money through which they give subsidy.
He highlighted that subsidizing fuel has extracted a significant amount of money from the national exchequer. “We will restore the program. If the government has to tighten its belt, it will do so,” he added.
It must be noted that the previous government was planning on importing fuel at a 30 percent discounted price from Russia, which would have allowed the then-ruling part to maintain petrol and diesel prices.
The impending price hikes will drive up the prices of fuel by a huge margin. This realization has placed the masses and several businesses into a state of panic.
Mehangai ko Mukaooo March ka kiya hoa. Har Koi Apni Bari mein Akar forun har kisi ko lagta hy ky price increase hony chahiyen .
When petrol price was140 odd, these same people said it was too high. International prices were also high then. Then the PDM /opposition were crying for a decrease but now crying foul. The freeze was done because of pandering by the opposition. Now they can’t sustain it. Sour grapes. We need an election now.
First PDM said that IK is keeping petrol too expensive. Note they themselves are increasing its price. Why the double standards now? 👊
Dalli ke bache