Another massive price hike in Pakistan, govt has increased the petrol price to Rs209.86 per liter.
June 5, 2022
In a press conference held in Islamabad, on June 02, 2022.
Miftah Ismail announced increasing petrol price by Rs30 per liter.Diesel and light diesel prices also moved by Rs30 per liter, he says.
Willing to import from Russia, provided that sanctions are not imposed, he says.
Finance Minister Miftah Ismail announced Thursday that the price of petrol has been moved up by Rs30 to Rs209.86, a few days after increasing the rate of the commodity by the same amount.
Prime Minister Shebaz Shreef has approved hiking the price of petrol, diesel and light diesel by Rs 30 per liter , said by Miftah Ismail in a press conference . It will be effective from June 3.
"...kerosene oil is the only commodity which is not leading to losses for the government.
The Latest prices are as under.
New prices (per liter):
Petrol — Rs209.86
Diesel — Rs204.15
Light diesel — 178.31
Kerosene oil — Rs181.94
The finance minister acknowledged that the lower-income segment of society would be affected the most as a result of the petrol price hike, but noted that the rate of oil has also skyrocketed in the international market.
In response to a question, the finance minister said he was hopeful of reaching an agreement with the IMF in June, but noted that there were some reforms that the government still had to do.
Ismail said the price hike was inevitable as he had to strike a deal with the international moneylender as ex-finance minister Shaukat Tarin had "tied the government's hands" due to the agreements he made with the IMF during his tenure.
Oil from Russia
In response to a question, the finance minister said the previous government did not make substantial efforts to import oil from Russia — a much-touted claim that the PTI has been making.
Ismail said when Khan concluded his Russia visit, no newspaper mentioned Islamabad's deal with Moscow a day after that. "If there is a mention of it, let me know."
The finance minister added that ex-energy minister Hammad Azhar had written a letter to the Russian authorities about Pakistan's willingness to import oil from Moscow.
He noted that Pakistan will be willing to import cheap oil from Russia, provided that no sanction will be imposed on Islamabad.
"The subsidies on cooking oil and ghee will continue for some time, but we will try to ensure — in line with PM Shehaz Sharif's directions — to keep the rates of sugar and wheat fixed."
Electricity prices
On today's hike in electricity prices, the finance minister said he has "not seen" the National Electric Power Regulatory Authority's (NE PRA) report as yet, but assured that the increase would not reflect on June's bills.
NE PRA has raised the basic power tariff by Rs7.9078/kWh for the next fiscal year 2022-23, increasing the burden of inflation on the people of Pakistan.
Currently, the basic power tariff is Rs16.91 per unit, and with an increase of Rs7.9078 per unit, it will be more than Rs24 per unit.
Ismail said even if he reduces the government's expenditure by 10%, the country could save only Rs4 billion monthly, which was not substantial. However, the subsidy on petrol costs the government Rs4 billion per day, he said.
"Our govt sustained pressure of COVID & gave Rs 1200 in worth economic package. This year alone, we reduced sales tax to zero per cent.
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