ISLAMABAD : Citing the rising commodity price in the global market, Finance Minister Ishaq Dar on Tuesday announced a Rs19.95 per litre increase in the petrol rate – a move that will further trigger the inflation in the country at all levels.
In a message aired live by TV channels, Dar said the hike in high-speed diesel (HSD) would be Rs19.90 per litre, as he argued that the government was bound to follow the deal reached with the International Monetary Fund (IMF).
Any deviation would have negative consequences for the country and the outgoing government took the decision in Pakistan’s interest, he said, adding that Prime Minister Shehbaz Sharif had directed them to pass on minimum possible burden to the masses.
With the new prices coming into effect with an immediate effect, petrol and HSD will now be available for Rs272.95 and Rs273.40 per litre respectively – increasing the transportation cost both for individuals and goods to an unbearable level.
Under the stand-by agreement between Pakistan and the IMF, the government is not only bound to increase the Petroleum Development Levy (PDL) from the present level of Rs50 per litre to Rs60 but also do away with the subsidies to reduce fiscal deficit, leaving the people at the mercy of market.
Constitutionally speaking, it is the last fortnightly price review of the outgoing PML-N coalition government whose term is set to expire on 12th of this month. That’s why the government was hesitant to make the announcement supposed to made on Monday (July 31) before 12am – a politically devastating move given the general elections are to be held in October or November.
In this context, Dar said they tried to work out all the available means for providing relief to the masses while delaying the move but couldn’t find any room for that.
But the people don’t think in terms of deals, figures, international obligations and market forces as the latest hike petroleum products’ prices didn’t come in isolation.
In recent days, the government also jacked up the electricity base price as part of the energy sector reforms suggested by the IMF which envisage reducing circular debt and yet again minimising subsidies although the government says those consuming up to 200 units – stated to be over 65 per cent of total consumers – won’t be affected by the decision.
Meanwhile, the Oil and Gas Regulatory Authority (Ogra) too raised the tariff for the Sui Northern Gas by 50 per cent and the Sui Southern Gas by 42pc on average – as the increasing the prices of utilities and fuel comes in a package.
It means a Sui Northern gas consumer is going to pay an additional amount of Rs415.55 per MMBtu (Metric Million British Thermal Unit) while the increase in the case of Sui Southern stands at Rs417 MMBtu.
courtesy : dunya news
