Prime Minister Shehbaz Sharif has said that the government has increased the price of petrol and diesel in a series of tough decisions, however, he did not clarify the expected hike in the rates of petroleum products as the fuel price soared to $117 per barrel in the international market.
India, which is buying oil from Russia at a 30% discount, and for which the PTI has started negotiations, the premier’s speech did not give a clear policy of whether the government is intended to provide relief to its people by buying oil from Russia at a 30% discount or not.
During his speech, PM Sharif admitted that the tough decision for increasing the fuel prices were among tough decisions being taken in view of the deteriorated economic situation which was also being faced by the oil producing countries.
He blamed the previous Pakistan Tehreek-e-Insaf (PTI) government for reducing the fuel prices through subsidies which could not be borne by the national exchequer.
Relief package
PM Shehbaz Sharif has announced a new relief package worth Rs28 billion per month to lessen the impact of increase in the prices of petroleum products on the low-income segment of the society, Radio Pakistan reported.
In a televised address to the nation, he said under the relief package, 14 million deserving families will be immediately provided Rs2,000 each, which will benefit 85 million people or one third of the total population.
The Prime Minister said this financial assistance is in addition to the support being already provided under Benazir Income Support Program. He said this financial assistance will be included in the next financial budget.
Shehbaz Sharif said he has also directed Utility Stores Corporation to ensure provision of 10-kilogram flour bag at 400 rupees across the country.
The premier said the last government announced subsidy on petroleum prices for its political benefits without keeping in view the precarious situation of the national exchequer, putting the nation into severe economic crisis.
Unclear stance for Russian oil
It should be noted that India, which is also a strategic partner of the United States (US), agreed to buy petrol and diesel from Russia at 30% less than the international market, putting aside the threats given to New Delhi by the United States and Europe.
The Indian finance minister had announced a reduction of Rs9.5 per liter on petrol and Rs7 per liter on diesel, while global oil prices are on the rise. Central excise duty on petrol had been reduced by Rs8 per liter and on diesel by Rs 6 per liter.
The Indian government had also announced a subsidy of Rs200 per gas cylinder for the citizens through Ujjwala Yojana program.