‘No proof’ of cheap oil pact with Russia

Musadik Malik says petroleum levy is already zero in country

ISLAMABAD:

Minister of State for Petroleum Dr Musadik Malik on Friday said that there was no evidence of a deal with Russia for cheaper oil -- a claim former premier Imran Khan had been making since his ouster from power.

Addressing a news conference in the federal capital, Malik said before the dismissal of the PTI government, then energy minister Hammad Azhar had written a letter to Russia, asking for an increase in trade, but no response was received. “There is no evidence of Pakistan buying petrol from Russia.”

The state minister maintained that the former premier was giving away subsidies without any practical work on the matter.

He added that Imran had frozen the petroleum prices after reducing them by Rs10 per litre, without allocating the required subsidy amount or receiving approval from the Economic Coordination Committee (ECC).

Therefore, he said, they checked and found one month’s subsidy cost to be Rs120 billion, and a total subsidy of Rs360 billion was given, projecting an annual subsidy of Rs700-800 billion.

He added that ex-PM Imran had inflicted losses worth Rs700-800 billion to the national exchequer on account of subsidising petroleum products if taxes were included.

“The total subsidy on oil up to June 2022 was Rs360 billion which was announced without consulting the ministry, cabinet, or inking any agreement.”

He added that the annual budget to meet expenses of the federal government was Rs520 billion.

Commenting on the delay in increasing fuel prices, the state minister said that Prime Minister Shehbaz Sharif had bluntly asked them not to do it.

He said that subsidies were suggested for 20,000 to 25,000 people, and the prices were only increased after the proposals were presented. "We have to save the people having an income of Rs20,000-Rs30,000 per month from the impact of inflation. Let the rich share its burden,” he added.

The government has devised a comprehensive strategy to save the poor segments of society from the impact of increased petroleum prices.

He added that the premier himself would inform the public about the subsidy plan for the poor.

Commenting on fuel prices in India, he said that today it was being said that India had bought oil from Russia, which was why petrol was cheaper there.

He added that petrol in India cost Rs250.17 per litre and diesel Rs234.3 per litre. However, they were being sold at Rs179.86 per litre and Rs174.15 per litre in Pakistan, respectively.

“Now tell me where petrol is cheaper?” he asked.

He claimed that India had reduced central excise duty on petrol and diesel, whereas Pakistan had imposed zero levy and sales tax on the two products.

“Our levy rate is already zero,” he emphasised.

The state minister informed the media that the state-run Pakistan State Oil (PSO) had arranged nearly 50% of petroleum products imports through open tendering. “The people claiming to buy petroleum products at a 30% discount should compete for the open bidding and bring cheap oil to the country,” he added.