Prime Minister Shehbaz Sharif announced on Friday that he had rejected another recommendation for an increase in the prices of petrol and high-speed diesel (HSD).
He made the announcement during an address to the nation, saying that he had been recommended to approve an increase of Rs95 per litre in the price of petrol and Rs203 per litre in that of HSD.
“However, I have rejected it,” he said.
The announcement comes a week after he said he rejected an increase of Rs76 per litre in the price of petrol Rs177 per litre in that of HSD. In the same instance, the premier had also said that he had rejected a similar recommendation earlier as well, following a hike in oil prices in the international market on March 13.
The developments take place amid a global fuel crisis resulting from the US-Israeli war on Iran, which began on February 28.
Moreover, the Centre and the provinces also agreed to immediately roll out a mobile application-based quota system for the provision of fuel for two- and three-wheelers to ensure a targeted subsidy for the low-income strata and minimise the leakage of public money into untargeted avenues.
In this context, PM Shehbaz said in his address today that the world was currently facing an “extraordinary and extremely challenging situation”, in which even big economies were helpless.
“Even developed countries, which have resources in abundance, are facing an extreme economic crisis,” he said, adding that the potential impact of this economic crisis was not difficult to assess.
But, he said, “we had been preparing beforehand to deal with this storm. We immediately took decisions that were not easy to take”.
The premier said a cut of Rs100 billion in the development budget and austerity measures had allowed the government to reduce the economic burden on the people.
“It must be clear to you that today, every litre of petrol that is filled in your vehicle reflects the government’s policy of austerity and its realisation of responsibility,” he said.
PM Shehbaz said it had been recommended to him to approve an increase of Rs95 per litre in the price of petrol and Rs203 per litre in the price of HSD for the week starting today.
“But, I rejected it once again, considering difficulties, and the federal government has once again decided to bear this burden,” he said. The premier reiterated that the federal government would bear the burden of Rs56bn this week so that the people did not have to bear it.
He said that keeping in view the fuel prices in the international market, the price of petrol in Pakistan should presently be Rs544 per litre. “But you are getting it for just Rs322,” he said.
Similarly, he said, the price of HSD should have been Rs790 per litre, “but the government is providing it to you for just Rs335 per litre so that your burden and difficulties don’t increase”.
He said these figures may seem mere numbers, “but the government has borne the historic burden of Rs125bn over a period of three weeks so that you don’t have to bear it”.
PM Shehbaz said this amount could have been utilised for several development projects. “But at this point, nothing is more important to me than your economic security,” he said.
He urged the people to bring a “revolutionary change” in their daily lives. “Think before travelling whether it is necessary; whether it is necessary to travel in a car or on a motorcycle every time.”
He said the austerity was not an option anymore but a collective responsibility.
PM Shehbaz said while long queues for fuel and skyrocketing prices were seen in other countries, his government had taken timely and effective measures to cushion the effects of the “storm of inflation”.
“But the government cannot do this alone. I cannot do this alone. I request that you fully cooperate regarding a comprehensive plan that we are devising to deal with this challenging situation,” he said, adding that the plan would be announced in the coming days.
The premier began his address by speaking about Pakistan’s efforts for the restoration of peace in the Middle East through diplomacy.
“Pakistan is making sincere and full-fledged mediatory efforts on the diplomatic front for an end to this war, so that the region and brotherly Muslim countries no longer face the destructive and negative consequences of this war,” he said. The PM further said the purpose of these efforts was to pave the way for lasting peace through “collective wisdom and consultation”.
“Pakistan’s diplomatic efforts are not merely an international diplomatic responsibility, but they are also purely for the will of Gold and the benefit of ummah,” he said.
PM Shehbaz said irrespective of “which school of thought sect we belong to, as Muslims, we all wish for peace”.
In this context, he continued, he had detailed discussions with the heads of Iran and Gulf countries multiple times. Moreover, Deputy Prime Minister and Foreign Ishaq Dar had also been working for the restoration of peace while Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir was playing an “active and key role” for the success of this process of rapprochement, he added.
“I appeal to you to pray for the fruition of these efforts,” the PM said.
Separately, the government has stepped up efforts to tackle the energy situation, with multiple shipments of LPG and petrol arriving at Port Mohammad Bin Qasim (PMBQ) in Karachi.
Authorities confirmed that there is no shortage of LPG or petroleum products in the country, adding more vessels are expected in the coming days to ensure a steady supply.
According to the port administration, the vessel PCG Pericles has arrived from Oman carrying over 3,800 tonnes of LPG and is currently stationed at the Port Qasim outer terminal. Another oil tanker, MT Virgo, has anchored with around 3,800 tonnes of petrol. In addition, ship Navigator Aries has reached Port Qasim from Iraq, carrying 11,136 tonnes of LPG.