PM announces reduction in petrol prices by Rs9.43

Published: October 31, 2014
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Prime Minister Nawaz Sharif. PHOTO: AFP

Prime Minister Nawaz Sharif. PHOTO: AFP

ISLAMABAD: Petrol prices have been reduced by 9.43 rupees per litre to provide relief to public, the prime minister announced on Friday while addressing the special meeting of Cabinet in Islamabad.

During the meeting, the premier announced the reduction in the petroleum prices. Hi-Octane users were the biggest beneficiary of the decision as the price of Hi-Octane has been slashed by Rs14.83 per litre to Rs116.45. After the reduction of Rs9.43 per litre, the price of petrol has been lowered to Rs94.16 per litre from previous rate of Rs103.59 per litre. The prices of Diesel and Kerosene Oil have been decreased by Rs6.18 and Rs8.16 to Rs101.12 and Rs 87.52, respectively.

The prime minister said the government is drastically reducing petroleum prices despite sit-ins and protests causing huge losses to the national economy.

“The government is committed to bring economic change in the country and provide relief to the people,” said the PM, adding that the country was moving towards economic stability, but sit-ins and protests had disrupted the development process.

Audit

The Cabinet was told that two audit firms were hired to probe over-billing in terms of electricity bills. In its initial reports the firm had pointed towards 31 per cent increase in billing, 22 per cent due to tariff increase last year and nine per cent due to increase in consumption.

Secretary Water and Power proposed that the consumers which were using 300-500 units may be given a subsidy of Rs22 billion.

The PM in this regard instructed to constitute a committee to provide immediate relief to the effectees. The committee will comprise Minister Water and Power, Minister for Petroleum, Minister for Interior, Secretary Ministry for Water and Power, and will be headed by Minister for Finance.

Over-billing

Distribution companies, which install electricity meters, had allegedly put up meters which functioned at a fast pace, hence increasing electricity costs. However, power companies were reportedly not aware of this issue.

As per government policy, meter readings for July should be taken again and additional money should be repaid to the consumers.

Economic Growth

Commenting on the current economical state of the country, the PM said that there has been a halt in economic growth which Pakistan had begun to experience prior to the sit-in in the capital.

“The country would have been in a much better state economically. However, there are those who have been a hindrance to the country’s growth and development,” the PM said, while rejecting all rigging allegations made by protesters in Islamabad.

He attributed a good economy to reduced poverty, better streets, better projects and dams, and new motorways.

The premier stood firm in his stance that any given government should serve their five year term before the next government comes into power.

“If we finish our five year term, we will work on improving and building a better Pakistan. We will then be able to give the next government a more stable Pakistan to build and grow further,” the PM explained.

The PM expressed regret about the Chinese president postponing his visit to Pakistan and added that this has extended to the president of Maldives as well and Sri Lanka.

“Investors no longer want to come to Pakistan and the value of the rupee is declining,” the PM said regrettably.

PM Nawaz concluded by touching upon petrol prices and urged the chief ministers of all provinces to focus on reducing transport costs so that the public could reap the benefits of lower costs.

137 oil wells spudded in the past year

Briefing the meeting, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said in the last year 37 new oil and gas discoveries have been made. The minister stated that the Petroleum policy 2012 has been implemented adding that 44 new exploration agreements have already been signed.

Abbasi stated that 137 oil wells had been spudded in the past year in contrast to the 370 wells spudded during the previous regime.

He further claimed that oil production has reached 98,980 BBL/day, which is the highest ever in the history of the country. He added that the ministry of petroleum is providing additional gas to Fertilizer sector which had an impact of Rs30 billion.

Counting SSGC 400 MMCFD LNG terminal as an achievement of his ministry, Abbasi said the terminal would start working February onwards. The LNG terminal would provide LNG to IPPs which would generate 2500 MW electricity, the minister added.

The meeting was informed that Gas Infrastructure Development Cess (GIDC) has been implemented. It was also revealed during the meeting Gas theft (Control and Recovery) Act has also been promulgated which would help save gas and generate revenue.

Prime Minister appreciated the 1000 MW Gas field on-site power generation policy. Abbasi also apprised the cabinet of the challenges faced by the ministry in the next 3 years, which were, implementation of Iran-Pakistan gas pipelines project, implementation of TAPI pipeline, implementation of South-North gas pipeline project, unbundling of SNGPL and SSGC, reduction of un-accounted for gas to 7 %.

Bus drivers refuse to reduce shares

After the premier announced that petrol prices will be reduced, the Karachi Transport Ittehad (KTI) said that they will not reduce their fares until diesel prices aren’t brought down to Rs93.

The premier stated that only petroleum prices will be reduced, whereas roughly 90% of the public transport in Karachi is run on CNG and diesel. Hence, the KTI has decided not to reduce their fares.

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Reader Comments (35)

  • Musician
    Oct 31, 2014 - 1:54PM

    thankyou Imran Khan..you have brought the corrupt PMLN down to its knees..may Allah protect you and gran you a historic win

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  • MUNIB
    Oct 31, 2014 - 1:56PM

    +ve step

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  • SAK
    Oct 31, 2014 - 2:00PM

    Why have this farce when every audit and judicial commission report is rejected. Funnily no one is ever found guilty!!

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  • Hassan
    Oct 31, 2014 - 2:04PM

    report always ends here. it is a crime to overbill.
    the guilty should be punished and ministry should be taken away from khwaja sahab.

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  • Naveed
    Oct 31, 2014 - 2:06PM

    good step by PMLn.

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  • king
    Oct 31, 2014 - 2:23PM

    those who don’t like imran khan should not get the refund…after all it’s your PM’s money…why would like it back?

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  • Nida Alvi
    Oct 31, 2014 - 2:57PM

    @Musician: Come back to reality! If you follow Imran Khan, praise his “superb” governance at KPK. He is a Containerized non-entity in the Federal.

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  • Nida Alvi
    Oct 31, 2014 - 2:59PM

    This is a good step by the PMLN Government at the Centre. The Federal Government should now force the provincial governments to reduce the fares and pass on the benefit to common man.

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  • salman
    Oct 31, 2014 - 3:01PM

    @king:
    Haha, if that were to be implemented, even Shahbaz Sharif would claim his refund!

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  • Sabir
    Oct 31, 2014 - 3:09PM

    Reduction in petrol price by only 9.43 Rs is a joke as the international prices have fallen by more than 25%. The government is still pocketing more than Rs 50 per liter. All credit for this decision goes to PAT and PTI for putting up the pressure on the government. It further shows that we have elections down the corner.

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  • zahra.mir84@gmail.com
    Oct 31, 2014 - 3:10PM

    Do you guys read international news? The price of commodities has almost halved, which is why he can decrease the price. Actually, he should be able to decrease it by much more (since dollar has gone up), if he wants to align with the international market he can cut by a further 15 rs.

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  • Rex Minor
    Oct 31, 2014 - 4:17PM

    Is it the function of the Prime minister to announce oil price reductions or hikes. It is the ISIL and the Libyan so called terrorists who are flooding the free market with oil, couple with the reduction in world demand because of recessionary conditions in industry countries which has brought the oil prices down.

    Rex Minor

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  • salman
    Oct 31, 2014 - 4:24PM

    “…rejecting all rigging allegations…”

    If that is the case, please ask all your ministers to take back thier stay orders, so vote verification can proceed. If there was no rigging, then the facts should support your stance, right?

    This same question I have been asking for months and no PMLN fan can answer…

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  • salman
    Oct 31, 2014 - 4:27PM

    As per government policy, meter readings for July should be taken again and additional money should be repaid to the consumers.

    For July!?!

    How are they going to do this? Are the meter readers digital/electronic that they hold meter readings per month or day for the past few months? At best they can estimate the readings based on historic data. Which means that the refunds (if given) cannot be accurate. So some people will not get the right refund (if given).

    More wishy washy stuff from PMLN govt.

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  • Pity
    Oct 31, 2014 - 5:05PM

    The government has increased profit margin of petroleum dealers by 49 paisas per liter. In this way the petroleum companies will gain profit of 4 billion rupees from the consumers. So no need to be happy.

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  • Muneer
    Oct 31, 2014 - 5:16PM

    What a sham PM?.Increase in POL price is announced as increased by the OGRA,where as reduction is announced as decreased by the PM.Is he avoiding responsibility?. Also over billing in the electricity bills has been done all over Pakistan and not at local or provincial level.This indicate involvement of Federal government for which responsibility is of the PM and not of any one else.

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  • Real Truth
    Oct 31, 2014 - 5:57PM

    @zahra.mir84@gmail.com: Nope, please get your math right!!! Crude prices in the world markets have certainly registered a steep decline — from $102 to almost $80/brl; yet the reduction is NOWHERE near 50% as you claim — its more like 21%!

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  • AB
    Oct 31, 2014 - 6:01PM

    This is peanuts.. In US, the prices went from $3.85/gallon to $2.74/gallon in 20 days. That is about $1.10 per gallon (3.8 liters) or Rs113 per 3.8 liters, which is about Rs 30 per litter.

    Shame on PML-N.

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  • Real Truth
    Oct 31, 2014 - 6:02PM

    @Musician: OMG, the naïveté of PTI followers is mind-boggling!!! This price reduction is NOTHING to do with IK and his Dharna pranks — this is simple function of crude price decline in the world markets. Crude price have come down from $102 to $80/brl, so govt is able to pass that reduction on to the consumer — does not take a genius to figure this out, basic math skills will do!!!

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  • zaman
    Oct 31, 2014 - 6:05PM

    SIT-INS have a ZERO relationship to the price of oil or any other commodity for that matter, otherwise the price of everyday goods would be falling like dead flies thereby benefiting the poor man on the street , I don’t see that happening very soon.

    If Nilofer went on a rampage at the coast it would due to the protest otherwise if Nilofer bypassed Pakistan then the credit goes to the PM.

    The oil companies profit either way, REMEMBER the PM wants to PRIVATISE The Oil and Gas Development Company Limited, so it needs to be ripe enough to pluck.

    NB; also agree with;Sabir,zahra.mir84@gmail.com and Rex Minor to some degree.

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  • Jibran
    Oct 31, 2014 - 6:05PM

    Where is OGRA? This is interference in the domain of others. Besides, the differential was about Rs. 20, but only half of it passed on to the consumers.

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  • Nadeem
    Oct 31, 2014 - 6:56PM

    what,s the benefit of reducing price of petrol for the poor? They should try to reduce the price of kfc & McDonalds. And also if Imran khan had not staged the sit in they would not have even lower prices of petrol. Go Nawaz Go.

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  • Yasser
    Oct 31, 2014 - 7:03PM

    No need to thank Imran or Nawaz. There has been the drastic reduction of petroleum prices in the international market and the government has to comply and reduce it.
    .
    The irony is that this ostrich shameless prime minister of ours is yet again trying to get its credit by announcing the reduction as he has done some thing to reduce the price where as announcing the new price is the job of clerks in the petroleum department.

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  • silverfox
    Oct 31, 2014 - 8:56PM

    projects. .motorway list is endless..but he did not mention education and health which are key to get growth …all government ills he blames pti, he claims investors from abroad do not want to invest in Pakistan due to dharna, reason foreign investors avoiding pakistan is simple without energy you cannot run factories, no security fears of kidnapping ..Thanks to corruption no 1 willing to pay when other nations such has india Bangladesh are far safer options were costs are lower ie electricity is far higher per unit on pakistan compared to others so from the point of a foreign investor why would you invest in pakistan …pmnl is all based on deception as are there policies ..whatever happened to the 3 Es why don’t nawaz take responsibility and admit mistakes but that would be to much for this repulsive gross inept useless illiterate excuse for a man

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  • Parviz Sani
    Oct 31, 2014 - 9:07PM

    The Nation in general always criticize the ruling party in Pakistan.Interesting point is even if the government did something beneficial for the people ,they do condemn.It appears the we need to develop an attitude to see & assess things rationaly

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  • musician
    Oct 31, 2014 - 9:52PM

    @real truth

    Dude previously also global petrol prices decreased several time but both pmln and PPP govts refused to give considerable decreases..1 rs 2rs 50paisas..it was a joke..this is happening because nawaz knows if he doesn’t ik will use it to his political advantage..this dharma is the best thing that cudve hapned coz it brought PPP and pmln out a there comfort dynastically zones

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  • syed baqar ahsan
    Oct 31, 2014 - 10:13PM

    coming back to senses credit goes to Imran Khan

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  • Nido
    Oct 31, 2014 - 10:17PM

    Here in UK the fuel prices have dropped from 138 to 127 in the past two month which makes it an 11 pence drop, in that respect the rates should have fallen by 17 rupees in Pakistan. So Mr PM you have’nt done any favour..must say that you have been a bit honest and decreased the rates according to the global oil market. In the past rates were minimally decreased relative to other countries and the extra money used to go into bottom-less pockets. Not thecase any more mate!…..thanks to Imran Khan’s dharna and danda that you guys are being cured!

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  • syed baqar ahsan
    Oct 31, 2014 - 10:20PM

    will the wapda staff get the punishment along with manufacturer of speedy meters,it is serious crime,who has taken the the surplus money

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  • Altaf
    Oct 31, 2014 - 10:39PM

    Reduction in petrol price by only 9.43 Rs is a joke as the international prices have fallen by more than 25%. The government is still pocketing more than Rs 50 per liter. All credit for this decision goes to PAT and PTI for putting up the pressure on the government. It further shows that we have elections down the corner.
    Do you guys read international news? The price of commodities has almost halved, which is why he can decrease the price. Actually, he should be able to decrease it by much more (since dollar has gone up), if he wants to align with the international market he can cut by a further 15 rs.

    Recommend

  • Aziz
    Nov 1, 2014 - 12:56AM

    Has the PM now got the additional portfolio of Finance Minister? Such announcements should normally be made by the head of the Finance or Commerce Ministry.

    Or he wants to steal the credit of the announcement from him? The Sharifs seem to be incapable of giving credit to anyone else except another Sharif.

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  • Akib
    Nov 1, 2014 - 2:29AM

    @musician:
    The dharna is doing nothing except devaluing the rupee, we all know and see the prices of everything we buy, unless imran khan gave you the sense of sight his mindless allegations and chaos drama across the country has done nothing. Oh wait it does divert international investors because they want to invest in a country who can maintain its own currency, and pay its bills, not one that goes by civil disobedience, and speeches given out to empty chairs.

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  • Real Truth
    Nov 1, 2014 - 4:41AM

    @musician: Dudess, wrong again!!! Most drastic decline in crude prices has happened only recently, and as a result, gasoline prices have come down more significantly everywhere, and Pakistan is no exception. Trying to credit IK’s and/his bro’s sham dharnas for this price break is an ignorant view at best!!! Dharna’s have FAILED; one leader has already bitten the dust, other is slave to his ego, and has managed to box himself, and can’t get out! Still, if some people want to believe that every good things happens due to dharna pranks, they have every right to keep living in fool’s paradise!

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  • Junaid
    Nov 1, 2014 - 1:54PM

    Finally the pressure of Imran Khan has subdued the government in reducing the Fuel prices as demanded by PTI by 10 to 15 rupees. Although this has been done pretty late whereas prices in the global market have been on the downside for the past 6 months, whereas the government was trying to make the people ignorant of this fact. Thanks to IK for highlighting the issue due to which the government was forced to finally lower down prices. Still they had been pretty late in lowering prices which should had been done a month ago. Jab tak danda na do ye hakoomat nai manti. If there had been no pressure then the government would had lowered the prices by a maximum one or 2 rupees, but this time it has been different as there was severe pressure from Imran Khan and he had continuously demanded lower prices in continuous speeches from D-Chowk prompting the government to take the step. Finally a real opposition in Pakistan.

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  • zaman
    Nov 1, 2014 - 5:41PM

    @Nida Alvi:
    This is the reality of Pakistan, corruption, injustuce ,feudalism, terrorism, religious bigotry,caste-ism. The people in power of the merry go around, from the supreme court to the local police are forever laughing at the gullibility of the serfs they are destined to rule over, insects of the awam liberated by Mohammed Ali Jinnah and enslaved by the elites.

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