Govt drops another oil bomb on people

ISLAMABAD:

The coalition government on Thursday dropped another oil bomb as it increased the prices by up to Rs18.83 per litre on account of petroleum levy on these products.

The new prices will be effective from Friday (today).

Earlier, the government had been charging zero petroleum levy and general sales tax on petroleum products to absorb the impact of the hike in global oil prices and depreciation of the rupee against the dollar.

The government increased the price of petrol by Rs14.85 per litre, from Rs233.89 to Rs248.74 per litre.

High speed diesel (HSD) has been upped by Rs13.23 per litre, from Rs 263.31 to Rs276.54.

Kerosene oil has been jacked up the most, Rs18.83 per litre to Rs230.26 from Rs211.43 per litre.

This was followed by low diesel oil (LDO), with its price being increased by Rs 18.68 per litre to Rs226.15 from Rs207.47.

Also read: Fuel price hike triggers surge in kitchen items prices

The government has imposed Rs10 per litre petroleum levy on petrol, Rs5 per litre on HSD, Rs5 per litre on kerosene oil and Rs5 per litre on LDO.

Addressing a news conference, Finance Minister Miftah Ismail said that the increase was made to meet the conditions set forth by the International Monetary Fund (IMF).

“Imran Khan [government] had violated the agreement with the IMF to increase the petroleum levy every month,” the minister told media persons.

He said that the agreement with the global lender was moving forward smoothly and as per plan.

The minister said that the increase was made in view of the rising prices of petroleum products in the international market.

He said that the tenure of agreement with the IMF had been increased from three to four years.

The size of the loan programme had also been increased from $6 billion to $7 billion, he added.

“Sales and income tax refunds of all sectors have been made.”

On the occasion, Minister of State for Petroleum Musaddiq Malik hoped that the country would stabilise financially in a few months to come.

“The government is aiming at providing relief to the masses. We are working to rid the country of inflation and generate jobs.”

Malik added that the focus of the government was on boosting small businesses and creating more opportunities for the youth.

This month, the government had already increased the price of HSD by Rs59.16 per litre, petrol by Rs24.03 per litre, kerosene oil by Rs33.12 per litre and LDO by Rs25.53 per litre.

The present government is already facing criticism due to its massive hike in oil prices after it came to power.

The coalition government had made an increase in diesel price by up to Rs59 per litre effective from the start of the current month.

This increase was the fourth shock that had hit the consumers.

Following the increase in oil prices, the government had given Rs2,000 per person subsidy to eight million people and planned to bring six million more poor into the safety net to provide relief.

Earlier, the government had claimed that it was paying Rs100 billion monthly bill to clear price differential claims for keeping the oil prices lower.

The government had said that it would have to pay an annual bill of Rs1.20 trillion for subsidy if it decided not to increase the oil prices.

The incumbent government claimed that the previous PTI regime had not increased the prices of gas since December 2021. It had resulted in Rs1.4 trillion circular debt in the gas sector.

HSD is mainly used in transport and agricultural sectors. Therefore, more increase in its price would bring a flood of inflation across the country.

It will affect the farming sector that is already facing a miserable situation due to a record increase in the prices of fertiliser. Therefore, it will impact the prices of food products across the country.

Petrol is used in motorbikes and cars and therefore, further increase in its price will also hit the middle-class society.

Kerosene oil is used in remote areas where LPG is not available for cooking. Pakistan Army also uses kerosene oil in remote areas, including northern parts, of the country.