ISLAMABAD: It was around 1 am on Friday when the government notified yet another major increase in the prices of petroleum products. No one in this country of 220 million people could understand as what compelled the Pakistan Tehreek e Insaf (PTI) government to go for upward revision in petroleum products at mid night. Was it meant to provide a golden opportunity to oil marketing companies (OMCs) to make money in billions on their available stocks and help the government make more and more money in the shape of more taxes on sale of petroleum products. Except, this magic, there seems no logic in upward revision in petroleum products on wee hours on Friday.
As per new notification issued at 1 am on Friday, the government hiked the petrol price by Rs8.03 per litre, just a day right after PM Imran Khan pointed in his televised address that the prices of petroleum products may increase sooner.
According to the notification from the Finance Ministry new price of petrol stands at Rs.145.82 per litre after the surprise increase of Rs. 8.03.
The increase will go into effect straightaway from today November 5, as said by the Finance Ministry
Similarly, the price of high-speed diesel has been raised by Rs8.14 per litre, and it will now cost Rs142.62 per litre.
The price of light diesel oil has been fixed at Rs114.07 per litre after an increase of Rs5.72, while the rate of kerosene oil has jumped by Rs6.27 to Rs116.53 per litre.
“On November 1, 2021, the Prime Minister had not agreed with the proposals worked out by OGRA and Finance Division and directed to maintain the prices as notified on October 16, 2021,” said the ministry.
The government “has absorbed the bulk of pressure after making adjustments in the Sales Tax and Petroleum Levy,” they stated further, adding that otherwise, the prices would have been a lot higher than the notified ones.
“Maintaining the 16 October 2021 petroleum prices had some underlying concerns for example cash flow issues due to the short recovery of the cost,” as stated by in the notification.
The notification further stated that the government had already provided significant relief in the previously notified petroleum prices.
On Wednesday, while addressing the nation PM Khan said the government would have to jack up the prices of petroleum products in the country.
Citing the examples of worldwide prices of organic fuels PM asked “What can we do if inflation is being driven because of global factors?”. He also admitted the overall inflation saying “Yes, we are facing inflation in the country but you should also look at what the government is doing to alleviate the situation,” he said, adding that due to factors which are not in the hands of the government, petrol prices will have to be increased further.
“If we do not increase the price of petrol, the deficit will increase,” Khan said, adding that global oil prices have risen by 100%, while the price of petrol in India is Rs.250 per litre. It seems like the different Imran Khan on the container was never aware of these global phenomenon & unknowingly always blamed the governments for all the inflation.