Petroleum Minister Ali Pervaiz Malik announced on Thursday that the price of petrol was being raised to Rs458.4 per litre and that of high speed diesel to Rs520.35 per litre.
He made the announcement while addressing a press conference alongside Finance Minister Muhammad Aurangzeb.
At the outset of the press briefing, Malik expressed gratitude to President Asif Ali Zardari, chief ministers of all provinces and the leadership of the ruling party’s allies for their guidance at this “critical time”.
He said energy prices had skyrocketed in the international market due to the ongoing Middle East war. “It has not just engulfed the entire region but the entire world as well,” he added.
The minister stressed the need for discipline and unity at this time, expressing the hope that the “difficult and responsible” decisions that the government had taken today would be seen in the context of the situation in the Middle East, in which the Pakistan government had no role.
He regretted that the war had also affected the progress made for the stability and prosperity of Pakistan’s economy over the last one to two years.
Given the situation, he highlighted the need for de-escalation efforts on the diplomatic front.
He then pointed out that crude oil prices in Dubai and Oman markets, from where Pakistan procured 80 per cent of its energy supplies, had increased to record highs. Crude oil and diesel prices, he said, had reached historic highs, crossing the $250 dollar mark, he added.
Malik said Prime Minister Shehbaz Sharif had tried to shield the people from the impact of these prices by interventions such as austerity measures and cuts in development budgets.
He said the federal government had spent Rs129 billion since March 1 to “protect the people”, adding that meanwhile, arrangements for alternative energy supply lines also had to be made due to the disruption of traffic in the Strait of Hormuz.
“We tried to handle this matter in a better manner by means of austerity measures and through diplomacy,” he said.
The minister said the government had been successful on this front to some extent, pointing out that even countries wealthier than Pakistan had been struggling in these times.
Malik said the government had taken timely decisions, which ensured no disruptions in fuel supplies, acknowledging however that the hike in prices would have caused difficulties for the people.
He said Pakistan had some fiscal constraint and was also bound by some international agreements.
Moreover, he continued, the country’s economic stability could not be imperilled. Hence, he said, the government had decided to move away from blanket subsidy and focus this relief towards just the “weak segments” who needed it.
He said a meeting was held today, where the prime minister and military leadership were also present. It was decided at the meeting that instead of giving a blanket cover, the “the focus will have to be sharpened”.
Malik then announced that the price of petrol was being raised to Rs458.40 per litre and that of HSD to Rs520.35 per litre. He said the new prices will be effective from Friday.
More to follow
