ISLAMABAD: Prime Minister Shehbaz Sharif Thursday slashed the price of petrol by Rs18.50 per litre in order to pass on a decline in global prices to inflation-hit consumers.
Pakistan is experiencing 13-year-high inflation, reaching 21.3 percent last month.
The development hours after oil prices settled lower on Thursday, but pared nearly all losses after falling more than $4 earlier in the session, Reuters reported.
Brent crude futures for September settled down 47 cents, or 0.5 percent to $99.10 a barrel and finished a third session in a row below $100. Whereas, US West Texas Intermediate crude for August delivery settled down $95.78 a barrel, or 0.5 percent, down 52 cents.
Addressing the nation, Sharif said the government had increased the price of petrol after coming into power to meet the conditions laid forth by the International Monetary Fund (IMF) which he claimed were agreed on by the previous government of Pakistan Tehreek-i-Insaf (PTI).
However, with the prices in the international market declining, the government said it has “decided” to pass on the relief to people and, therefore, has decided to reduce the price of petrol and diesel by Rs18.50 and Rs40.54 per litre, respectively.
The new price of petrol will be Rs230.24 per litre while diesel will be available at Rs236 per litre.
Product |
Existing price |
New price w.e.f
|
Increase/Decrease |
| Petrol | Rs248.74 | Rs230.24 | -18.5 |
| Diesel | Rs276.54 | Rs236 | -40.54 |
| Kerosene oil | Rs230.26 | Rs196.45 | -33.81 |
| Light diesel oil | Rs226.15 | Rs191.44 | -34.71 |
At the outset of his speech, PM Shehbaz reiterated that the coalition government had inherited a “troubled economy” from the previous government. “The previous government trampled on the agreement it had with the IMF and laid landmines for us,” he said.
The premier further added that the previous PTI government, during its final few weeks, had slashed fuel prices even though the government’s coffers were empty. “This was done so our [coalition] government would fall into difficulties.”
Acknowledging that the decision to increase the price of petroleum products’ had burdened the underprivileged segment of society, he said: “We had no other way. We had to take tough measures.”
“However, today with God’s blessing, oil prices are declining in international markets and it is by his mercy that today we have got the chance to reduce the prices,” he added.
Commenting on the staff-level agreement with the IMF, PM Shehbaz appreciated Finance Minister Miftah Ismail and his team for his part in reviving the loan facility with the global lender but hoped that the current deal would be the last one. “After this, we will try to stand on our own feet.”
The prime minister said that the path ahead could be “thorny and difficult” but in the end, he said, “I reassure you that good times will come soon.”
Following the announcement by the premier, the finance minister said: “PM has just announced a reduction in the prices of petrol of Rs 18.5 per litre [and] in diesel of Rs 40.54 per litre.”
PM has just announced reduction in the prices of petrol of Rs 18.5/litre & in diesel of Rs 40.54/litre. The new price of petrol is Rs 230.24 & diesel is Rs 236/litre from 15/7. Kerosene is reduced by Rs 33.81 to Rs 196.45 & LDO is reduced by Rs 37.71 to Rs 191.44. Alhamdolillah pic.twitter.com/xESSje3KOv
— Miftah Ismail (@MiftahIsmail) July 14, 2022
“The new price of petrol is Rs 230.24 [and] diesel is Rs 236 per litre from [July 15]. Kerosene is reduced by Rs 33.81 to Rs 196.45 [and] LDO is reduced by Rs 37.71 to Rs 191.44, Alhamdulillah,” he wrote on Twitter, sharing a graph of Brent crude oil prices in the international market.
— With Reuters
