File photo. Asif Hassan—AFP
The ruling alliance on Monday announced a decrease in the prices of petroleum products for the next two weeks, with the finance minister claiming it reflected a decrease in fuel prices globally.
The new rates came into effect at midnight and will remain in place for the next fortnight. In a short televised address, Finance Minister Ishaq Dar stressed that the government is trying to “give relief to the masses during every fortnightly review.”
According to a notification issued by the Finance Division, the price of petrol has been reduced by Rs. 12/liter from Rs. 282/liter to Rs. 272/liter; high-speed diesel by Rs. 30/liter from Rs. 288/liter to Rs. 258/liter; kerosene by Rs. 12/liter from Rs. 176.07/liter to Rs. 164.07/liter; and light-diesel oil by Rs. 12/liter from Rs. 164.68/liter to Rs. 152.68/liter.
“In view of the declining price trend of petroleum products in the international market, government has decided to reduce the existing prices of petroleum products in order to pass on the benefits of decreasing prices trend of petroleum products in the international market and provide maximum relief to the masses,” it added.
In his address, Dar urged the transport sector to utilize the “relief” and pass it on “fairly” to the masses, referring to bus fares and transportation costs that impact several aspects of the country’s economy. Pakistan is currently facing record-high inflation of 36.4 percent, with data from the Pakistan Bureau of Statistics showing it is primarily linked to high fuel prices, food inflation and utilities.
The “relief” has, however, prompted some concerns from economic observers, who warn that the price decrease could risk derailing any possibility of reviving an International Monetary Fund (IMF) bailout that has been suspended since last November. However, the government maintains that it has not reduced the tax required by the IMF and the relief has been provided solely because of decreasing global prices.