Ishaq Dar, the finance minister, claimed on Tuesday that the price of petrol has increased by a shocking Rs. 19.95 per liter.
The minister declared that the decision was made “in the national interest” as he raised the price of High-Speed Diesel (HSD) by Rs. 19.90 to Rs. 273.40 per liter and that of petrol by Rs. 19.95 to Rs. 272.95 per liter. Additionally, he stated that the increased prices would take effect right away.
Ishaq Dar cited the rise in prices on the global market during the previous 15 days as the cause of the increase.
He further emphasized that despite their best efforts, his staff had run into obstacles when attempting to “work” on the Oil and Gas Regulatory Authority’s (OGRA) recommendations into the early hours of the morning.
Reason Behind Massive Increase in Petrol Prices
“The basic reason behind the delay in the announcement was that we were looking at if there were ways to reduce the price, if there was any room for that,” he said adding that Prime Minister Shehbaz Sharif had also been taken into confidence and that the approval came albeit with reluctance.
“We all know that the international commitments we have with the International Monetary Fund (IMF) regarding the petroleum levy, if they weren’t there then we would have announced either partial adjustment or whatever the premier would have deemed appropriate to give a lower increase,” he said, “but everyone knows we have a standby agreement.”
He further stressed that the PTI government’s move to break its agreements with the IMF had been damaging to the national interest of the nation.
Notably, it was anticipated that the government would use its power to prevent customers from receiving relief from the high cost of petrol, but that expectation had been set at a far lower level — Rs. 3.66 for HSD.
However, earlier this month, owners of petrol stations went on strike in protest at the government’s failure to raise their profit margins. Following fruitful negotiations, the government had agreed to accede to this proposal, raising their profit margins on both gasoline and diesel by Rs. 1.64 per liter.
To read our blog on “In petroleum dealers profit, Govt. okay to hike Rs. 1.64/L,” click here.
