PM Shehbaz rejects summary for fuel price increase, says govt to absorb Rs56b burden

Prime Minister Shehbaz Sharif on Friday said the government once again rejected a summary for a fuel price increase and would absorb the burden of Rs56 billion itself. He addressed the nation on the ongoing Middle East conflict that has triggered a global fuel crisis. PM Shehbaz said he had once again rejected a summary seeking an increase in petroleum prices and decided to maintain them at the current level for another week. “I was advised to increase the price of petrol by Rs95 per litre and diesel by Rs203 per litre, but I refused again in view of the difficulties faced by the people and decided that the government would bear the cost, amounting to Rs56b,” he said. “This week, the federal government will absorb an additional burden of Rs56b and the public will not have to bear this cost,” he added. The premier said that based on prevailing prices in the international market, petrol should have been priced at Rs544 per litre in Pakistan, but was being provided to consumers at Rs322 per litre. Similarly, he said the price of diesel should have been Rs790 per litre, but the government was supplying it at Rs335 per litre to shield the public from additional burden. Recalling the measures taken by the government so far to stabilise petroleum prices, the prime minister said that over the past three weeks, the government had borne a historic burden of Rs125b on its own, so that the public would not have to shoulder the cost. “This amount could have been used to fund numerous major development projects for your welfare, but at this moment, nothing is more important to me than protecting your financial well-being,” he added. Considering the current situation, he urged people to bring transformative changes in their lives, advising them to think carefully before using cars or motorcycles. “Practising austerity is no longer optional; it has become our shared responsibility,” he added. PM Shehbaz said that prices around the world have doubled, with long queues forming at petrol pumps as fuel costs have become unaffordable for the public and governments struggle to cope. “However, despite extremely limited resources, your government has so far managed, through timely and effective measures, to prevent this storm of inflation from reaching you,” he said. The prime minister urged the nation to join hands with the government in implementing austerity measures, noting that it could not do so alone. “Today, I make a heartfelt and sincere appeal to you, as fellow citizens, to fully cooperate with the plans we are formulating to face this difficult time. Detailed measures will be announced soon,” he added, hinting at strict measures to be unveiled by the government in the coming days. The prime minister said that even as he spoke, Pakistan was playing a highly responsible and important role on two fronts. “On the one hand, we are striving to safeguard our national interests and protect the public from the unprecedented surge in fuel prices in international markets; on the other hand, on the diplomatic level, we are active 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 be spared its devastating consequences. The prime minister added that efforts were being made to pave the way for lasting peace through collective consultation and wisdom. Earlier this month, the government sharply increased diesel and petrol prices by Rs55 per litre, or 20 per cent, citing the ongoing US-Israel and Iran conflict, which has disrupted global supply chains and pushed crude oil prices to a two-year high. In response to the crisis, both federal and provincial governments have introduced a series of austerity measures. These include an additional weekly holiday, a reduction in free petrol allocations for ministers, curbs on protocol vehicles, and proposals to provide subsidised fuel for students. Read: Govt to absorb Rs49/litre oil price surge Last week, the government also approved a significant increase of Rs200 per litre in the fuel levy on high-octane fuel used in luxury vehicles, raising the total levy to Rs300 per litre and the price to Rs600 per litre. Addressing the nation last Friday, the prime minister warned of a further increase in petroleum prices due to the war in the region, which has shaken the global economy. “If the situation continues to deteriorate, the possibility of a further increase cannot be ruled out,” he said. The prime minister said prices had risen considerably again at the beginning of the current week and that he had been advised to raise fuel prices once more. However, he added that he had decided against doing so out of a sense of responsibility and in view of the imminent Eidul Fitr. He said the government had so far spent Rs69 billion to prevent an increase of Rs127 per litre in petrol prices and Rs252 per litre in high-speed diesel. However, he added that this was not a sustainable solution, saying the government would absorb the burden as much as possible to protect the public and provide relief to the poor.

from Pakistan News, Latest News Pakistan, Pakistan Headline | The Express Tribune https://ift.tt/rhgOVP4