Abbasi urges government to stop setting petrol prices

ISLAMABAD: Awaam Pakistan President and former prime minister Shahid Khaqan Abbasi on Saturday criticised the government’s handling of economic policy, calling for the deregulation of petrol prices and greater promotion of electric vehicles to reduce pressure on the economy.

Speaking at a press conference at the National Press Club, Abbasi said the country’s governance and policymaking had been inconsistent. He argued that fuel pricing should not be determined administratively and said market forces should instead be allowed to set prices.

His remarks came after major changes in petroleum pricing announced by the government this week. On Thursday the government had raised the petrol price by Rs137 per litre, taking it to a record Rs458.4 per litre, however, on Friday, only a day later the rpetroleum levy on petrol was cut by Rs80 per litre, bringing the price down to Rs378 per litre.

Call for market-based pricing

Abbasi said that oil prices are not fixed by governments elsewhere and are instead determined through the market. He urged the authorities to allow private sector companies to import and sell fuel without administrative price controls. "Petrol prices should be deregulated and left to private companies to import and sell fuel", he said.

According to him the issue had also been discussed in parliament in 2018 and added that the conclusion reached at the time was that such a move was appropriate.

Abbasi maintained that the conditions for competition were already present in the market and said deregulation would produce immediate effects. "You will begin to see a difference from day one", he said.

He also said petrol and diesel could not be sold below their purchase cost, underscoring his argument that pricing should reflect actual market realities rather than administrative decisions.

Push for electric vehicles

Alongside his criticism of the current pricing framework, Abbasi also called for the promotion of electric vehicles. He said encouraging EV adoption could help ease the country’s economic burden.