Govt hikes diesel by Rs30, petrol price by Rs5

The federal government has increased the petrol price by Rs 5.44 per litre while the price of diesel has been increased by Rs 31.05 per litre, reported 24NewsHD TV Channel. 

After the hike, the price per litre of petrol has been set at Rs 316.15, up from Rs 310.71.

The price of diesel has been increased by 31.05 rupees per litre. The price of diesel has been raised from Rs 323.30 to Rs 354.35 per litre. The Ministry of Petroleum has issued a notification. The new rates will come into effect at midnight.

The prices have been remained the same for the next three days.

The federal government has decided to hand over the power to the Oil and Gas Regulatory Authority (OGRA). 

Federal Energy Minister Ali Pervaiz Malik stated this while addressing a media briefing in Islamabad along with Federal Information Minister Atta Ullah Tarar on Friday.

Energy Minister said that the government was going to take a difficult decision. He said that the government had transferred the oil relief to the people when the war tension eased. Federal Information Minister Atta Ullah Tarar said the government was providing an uninterrupted fuel supply. 

 Ali Pervaiz Malik said fuel prices would be fixed daily due to fluctuations in international market prices following renewed hostilities between Iran and the US.

Before announcing the latest cabinet decision on fuel prices, Ali Pervaiz Malik thanked the nation on behalf of the government, which he said has patiently borne the burden of this war.

He noted that despite the efforts of Chief of Defence Forces (CDF) and Chief of Army Staff Field Marshal Asim Munir and Prime Minister Shehbaz Sharif, the US-Iran war seemed to be escalating in the region.

“The Cabinet and prime minister have decided … Ogra will be given the responsibility to decide daily the fuel prices based on the international market,” the petroleum minister said.

He added that Ogra would not just publish the fuel rates on its website that are used to determine prices, but also publish the factors leading to the price that we see at each petrol pump.

Ali Pervaiz Malik stated that although the decision would surely add a burden on citizens, they would see how it was necessary for the state. 

Information Minister Attaullah Tarar also addressed the press conference, saying that the pricing formula for the daily petrol rates would be published formally by Ogra.

“We appreciate that it is not easy,” he said. “That increase in fuel prices impacts people. The government understands it.”

The minister stated that the increase in oil prices in international markets was linked to the worsening regional situation and that Pakistan’s efforts to resolve the situation had been “appreciated by the entire world”.

During oil shortages at the peak of tensions, he noted that “many developed countries in the world saw people lining up for fuel and they couldn’t get it”. At the same time, he said the prime minister had arranged additional oil reserves in advance.

“Many countries opted for rationing, but in Pakistan, there was no rationing or shortage,” Tarar said. 

He said that when prices were soaring around the world, the federal government reduced its development budget to provide Rs129 billion worth of subsidies, thus countering the price hikes. This, he said, was “a conscious decision” by the prime minister to ensure that the burden was not transferred to the people.

He also addressed the misconception that levies had been hugely increased, saying, “The fact is that the levy is currently lower than pre-war levels, if not equal … There was a special effort to reduce it.”

Tarar also commented that “we, as an economy and as a country, have to move towards electric bikes and electric vehicles. It is inevitable.” He termed this the best solution for the country’s import bill and to mitigate the impacts of rising prices.

Reporter: Awais Kiyani