No hike in oil prices, Govt approves Rs23 billion subsidy for oil companies
Petrol levy remains Rs105.37 per litre, diesel Rs55.24: Rs23bn subsidy to be paid to oil marketing companies: Decision aimed at easing burden on consumers amid global price pressure
The federal government has decided to maintain the existing petroleum levy on petrol and diesel while keeping fuel prices unchanged in an effort to reduce the financial burden on consumers, 24NewsHD TV channel reported on Sunday.
According to a notification issued by the Ministry of Energy (Petroleum Division), the levy on petrol will remain at Rs105.37 per litre, while the levy on diesel has been retained at Rs55.24 per litre.
The government will also pay a subsidy of Rs23 billion for the period from March 14 to March 20. The amount will be paid to oil marketing companies in the form of price differential claims to compensate them for maintaining the existing fuel prices.
Officials said the subsidy is part of the government’s effort to shield consumers from the impact of rising global oil prices.
Earlier, the Economic Coordination Committee approved the transfer of Rs27.10 billion to the relevant fund to support the subsidy arrangement.
Two days earlier, Prime Minister Shehbaz Sharif announced that the prices of petroleum products would not be increased despite an uptick in the global oil market.
According to a statement issued by the Prime Minister’s Office in Islamabad, Sharif said the decision had been taken to reduce the burden on the common man.
He said the government would provide maximum relief to the public in line with its commitments. The prime minister noted that the global economy was currently under pressure due to regional tensions, which could have a significant impact on Pakistan’s economy.
Sharif added that timely policymaking, austerity measures and financial discipline were helping the government deal with the situation effectively. He also appreciated the support of provincial governments in implementing austerity measures.
The prime minister said diplomatic and economic teams had ensured adequate supplies of crude oil to meet the country’s needs. He added that federal and provincial authorities were working together to ensure that consumers were not charged more than the officially notified prices.
