Increase in petroleum prices caused by higher oil prices in int’l market, defends Tarin

Finance Minister Shaukat Tarin said on Friday that the increase in petroleum prices was caused by higher oil prices in the international market.

Alongside the State Minister for Information and Broadcasting Farrukh Habib in Islamabad, the finance minister's remarks came while briefing the media on the government's recent decision to increase the price of petrol by Rs4 per litre, taking the price to a record level of Rs127.30 per litre.

The government also increased the price of high-speed diesel by Rs2 per litre. Now, it will be available at Rs122.04 per litre as against the previous rate of Rs120.04 per litre. It is widely used in the transport and agriculture sectors and will have a direct impact on inflation.

Today, Tarin maintained that the federal government passed on the minimum increase in cost to consumers. "The government absorbed the pressure of hike in prices in the international market by bearing the burden of Rs2 billion rupees," he said. "Pakistan is also impacted by the global oil price hike because of Covid-19."

The finance minister added that Pakistan stood at 17th position in respect to oil prices in the world, and the countries where prices are lower than Pakistan are oil-producing countries.

"Petroleum prices in Pakistan are the lowest in the region," he said. "The global oil price hike caused by Covid-19 has impacted Pakistan as well."

Read More: Petrol hits record level of Rs127 per litre

Furthermore, he said the entire world has witnessed food inflation due to the pandemic, and being a food importer, Pakistan also had to face this impact.

"The government is taking steps to bring down the prices of essential items," Tarin said.

A direct subsidy would be provided to deserving people on essential items like flour, edible oil, sugar and pulses, Tarin stressed adding that agriculture was also being focused to grow food items locally to meet the demands.

"Economy is growing with positive indicators of growth in agriculture, industry, services and revenue collection," the finance minister said.

He added that the government would soon launch the Kamyab Pakistan Program in line with Prime Minister Imran Khan's vision to make Pakistan a welfare state.

"Under the program, interest-free loans will be provided to farmers and urban citizens," he said. "A member of each deserving family will be provided skills. He said Sehat Cards will be provided across the country."