ISLAMABAD: A day after the government raised the petrol price by over Rs10 a litre and the rate of diesel by over Rs12, its ministers Sunday defended the move, pointing to the historic global surge in oil prices which increased the pressure on the inflation-hit consumers.
A Finance Division notification issued early Saturday set the price of petrol at Rs137.79 per litre while that of high-speed diesel at Rs134.48, ostensibly its highest point since the country’s birth 74 years ago.
“The government has absorbed the pressure and provided maximum relief to the consumers by keeping petroleum levy and the sales tax to [a] minimum,” the Ministry of Finance said, seeking to defend its decision.
Hit by a nationwide wave of condemnation of the move, Minister for Information and Broadcasting Fawad Chaudhry said the country “couldn’t be run on subsidies”.
In a statement, Chaudhry said the petroleum prices were increased due to a surge in its cost in the international market. “The oil prices in Pakistan are linked with [their] international counterparts […] the cost will lessen when its price in the international market will decrease,” he said.
“These economic hardships are temporary,” he said.
“The government is being criticised over the oil price hike as if we live on a different planet [than the rest of the world],” said the minister.
Oil prices settled at a three-year high above $85 a barrel on Friday, hours before they followed suit in Pakistan, boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.
Demand has picked up with the recovery from the Covid-19 pandemic, with a further boost from power generators who have been turning away from expensive gas and coal to fuel oil and diesel.
Front-month Brent futures are currently trading at more than $85.05 per barrel, up from less than $38 at the end of the same month last year, one of the fastest price increases in percentage terms for three decades.
Chaudhry said the people of Pakistan will deal with the rise as one nation since they [the surge] are temporary. “Our industries, agriculture and construction sectors are earning historic profits,” he said.
“The problem is for the salaried class to [resolve] which the private sector must give pay hikes. The increase in income is the [only] solution to increasing prices.”
‘IMPACT OF GLOBAL OIL PRICE SURGE’
Meanwhile, Minister for Interior Sheikh Rashid Ahmed pointed out the prices of petroleum products have increased the world over, compelling the government to increase the cost at home to meet the expenses.
He also acknowledged the rising inflation across the country but at the same time, expressed confidence the prices would be brought down.
He was talking to the press outside the residence of nuclear scientist Abdul Qadeer Khan who passed away last week. He said he had come to meet Khan’s daughter, Dina Khan, to consult her on the design of his mausoleum.
“As soon as a design is approved, the government would start building the mausoleum,” he added.
Ahmed warned his political rivals against “living in a fool’s paradise” and said Prime Minister Imran Khan wasn’t going anywhere before completing his five-year term. “Imran Khan is not going anywhere. He will complete his tenure,” he added.
He maintained the prices of edibles and crude oil were rising across the globe and Pakistan was also facing its consequences. He said the government was striving to control inflation.
The minister opined the price of dollar was surging due to a volatile situation in Afghanistan. He held the government had ordered an audit of four to five big exchange companies to examine the state of the greenback’s dearth.
He was of the view Pakistan Muslim League-Nawaz (PML-N) supreme leader Nawaz Sharif had “properly planned his escape” to London. “Why he is raising hue and cry now,” he questioned.
He said Prime Minister Khan had gotten an indiscreet opposition. They [opposition parties] lack political acumen, he lamented.
“They will keep indulging in political warmongering and will die down themselves,” the minister said.
Ahmed said the region was embroiled in a fresh wave of militancy but the opposition did not have any understanding of the situation.
He also lashed out at Sharif’s daughter, Maryam Nawaz, for using “provocative and unparliamentary language” in her speeches. “If [the mention of] Imran Khan is excluded from her speech, nothing much is left behind,” he said.
He said all developmental schemes in Rawalpindi were going to be completed soon.
