- Dr Ishfaque Hassan says increase to further fuel inflation rate in coming days
- Transporters, traders denounce POL price hike, jack up intercity fares
- PTI rejects announcement, saying people pay for their incompetence
ISLAMABAD: Finance Minister Ishaq Dar on Sunday announced a ‘whopping’ Rs35 increase in petrol and diesel prices for next seventeen days, adding further to the difficulties being faced by the public.
In a televised address, the Finance minister said that “We have decided to increase the price of petrol and diesel by Rs35.”
آسلام آباد:وفاقی وزیر خزانہ اسحاق ڈار اہم گفتگو کر رہے ہیں https://t.co/mDhWtZ0BeI
— PML(N) (@pmln_org) January 29, 2023
The price of kerosene oil and light diesel oil has been increased by Rs18,” Dar said, adding that the new prices would come into effect at 11am Sunday. The new price of Petrol would be Rs249.80 per litre, High speed diesel: Rs262.80 per litre, Kerosene oil: Rs189.83 per litre and Light diesel oil Rs187 per litre.
Sources said that the government has also increased Petroleum Development Levy on Diesel to Rs40 from Rs35 per litre whereas it reduced PDL on Kerosene oil and light diesel oil.
The Finance minister said that the Pakistani rupee saw devaluation last week and now “we are seeing an 11 per cent increase in the prices of petroleum products in the international market.”
Justifying the case, he said the price increase had been made in line with the 11% rise in oil prices in the international market. Dar defended the government as saying that the cost of petrol was not increased in the previous four months and instead it was decreased by roughly Rs20 for both petrol and diesel and by Rs29 and Rs30 for kerosene and light diesel.
Large queues of vehicles were seen at petrol pumps in Karachi, Lahore, Quetta and other cities of Pakistan from Saturday evening to Sunday morning amid talk of oil price hike. Since Saturday night when news of the increase in petrol prices circulated people have been lining up at the petrol pumps to replenish the tanks.
It is also pertinent to note that petroleum product prices are announced fortnightly, on 1st and 15th of every month, but government has increased prices today on 29th of the month.
However, Dar said that OGRA had advised Prime Minister Shehbaz Sharif to implement the new rates on an immediate basis to prevent the temporary hoarding and the speculations about the shortage of oil shortage.
The Finance minister further hoped that the announcement of new prices would dispel rumours about petrol supplies running dry. “This rise is being done immediately on the recommendation of the oil and gas regulatory authority who said there were reports of artificial shortages and hoarding of fuel in anticipation of price rises — hence this price rise is being done immediately to combat this.”
Sources said that the four-month strategy of Finance Minister Ishaq Dar badly failed as the federal government led by Premier Shehbaz Sharif has taken so far some tough decisions including removal of cape lock on dollar rate, increase in petroleum prices to please the International Monetary Fund (IMF).
Commenting on the POL price hike, Dean of NUST Dr Ishfaque Hassan said that today’s announcement by Finance Minister Ishaq Dar to increase the petroleum prices will further fuel the inflation rate in the coming days in the country.
He said that the country has been toy in the hands of the IMF, adding that he said that the nation should prepare itself to face severe economic conditions in the coming months. “We are at the mercy of the IMF and Pakistan has no other option but to look towards IMF”, he said.
While commenting on the situation, Shahid Mehmood, an Economist in PIDE said that the Ishaq Dar should have to follow the agreed policies of his predecessor Miftah Ismail to run the country’s economy.
The sudden high density shock could be averted if the Dar follows market based exchange regime adding that Mehmood said that economic policies of Ishaq Dar have been failed and he should resign.
Transporters, traders denounce new oil price hike
Leading trading and transport bodies in the country overwhelmingly on Sunday rejected a amssive increase in the prices of petroleum products announced by the federal government.
Transporters also announced hike in intercity and intra city fares and warned of shutting down transport if the government created any hurdles. Finance Minister Ishaq Dar announced an increase in the price of petrol and diesel by Rs 35.
Traders Association of Pakistan president Kashif Ch, in a statement, said they rejected Rs35 per litre increase in the prices of petrol and diesel, saying the latest increase would bring a flood of inflation in the country.
He demanded that the government immediately roll back the hike in petrol and diesel prices.
Pakistan Goods Transport Alliance president and MPA from Sindh Malik Shahzad Awan also rejected the increase in petrol and diesel prices, saying the price of petrol and diesel had been increased by Rs 35 each. He said after consulting all the transporters a plan of action would be announced later.
He said the policies of the imported government have brought Pakistan to the brink of ruin.
Awan said the time had come to take to the streets against the government, adding the priorities of the [imported] government were to create anti-people policies.
Meanwhile, the general secretary of Tajran Khyber Pakhtunkhwa Zahir Shah said the increase in the prices of petroleum products would bring a new storm of inflation, urging the government to withdraw record increase in the prices of petrol and diesel.
Transporters jack up intercity fares by 10pc
All Pakistan Public Transport Owners Federation (APPTOF) on Sunday announced 10 per cent increase in the intercity fares following a massive hike in the petroleum prices.
According to the federation spokesman, the participants of the meeting opined that considerable increase in diesel prices would destroy the transport system across the country.
The spokesman said the fare for Rawalpindi, Faisalabad and Multan from Lahore had been increased by Rs100; Lahore to Gujranwala Rs50, Lahore to Sadiqabad Rs200; and the fare for Lahore to Karachi had been increased by Rs600.
‘Widespread condemnation’
The leaders of Pakistan Tehreek-e-Insaf (PTI) on Sunday severely slammed the Prime Minister Shehbaz Sharif led the imported government over massive hiked the petrol and diesel prices by Rs35 per liter. While criticizing the PML-N government, PTI Vice Chairman Shah Mehmood Qureshi tweeted that the country is already standing on the verge of economic collapse and today the people have come under more burden at the hands of these imported rulers.
ملک پہلے ہی معاشی تباہی کے دہانے پر کھڑا ھے آج عوام ان امپورٹڈ حکمرانوں کے ہاتھوں مزید بوجھ تلے آگئے.پٹرول اور ڈیزل کی قیمتوں میں ایک بار پھر35 روپے اضافہ انکی ناکامی کا منہ بولتا ثبوت ھے۔ عوام کب تک انکی نااہلی کی قیمت ادا کریں گے؟کیا اربابِ اختیار مزید تباہی کا انتظار کریں گے؟
— Shah Mahmood Qureshi (@SMQureshiPTI) January 29, 2023
He stated that another Rs35 increase in petrol and diesel prices is proof of their complete failure. “How long will the people pay for their incompetence”, he questioned. Another party leader Farrukh Habib twitted, “Maryam Safdar was saying yesterday, have faith in Ishaq Dar. Where did Maryam go who used to say that if one rupee increases, Mian Sahib’s heart cries tears of blood’ he added. “Here, 35 rupees petrol, diesel has been made very expensive. He hinted that along with the petrol price imported govt would also increase gas and electricity prices.
On the other hand another PTI leader and former finance minister Shaukat Tarin has demanded the resignation of incumbent finance czar Ishaq Dar for pushing Pakistan to the brink of default and causing “immeasurable sufferings” to the masses through his imprudent economic policies.
Senator Tarin, in a statement, rejected the claims made by Senator Dar regarding the state of the economy and said that his party had hoped that Ishaq Dar will do the honourable thing and hand over his resignation for misleading the nation”.
Claiming Mr Dar has a “poor understanding of economic policymaking”, the PTI leader claimed that during the 2013-2018 period, the economy paid a heavy price because of the ‘dollar peg’ with exports plummeting from $ 24.8bn in 2013 to $ 22bn in 2017. “In 2022, the same experiment by Ishaq Dar resulted in the exports declining by 7pc. This clearly shows that Ishaq Dar has not learned any lessons from past mistakes and is unfit for this job,” he added.
PTI leader Hamad Azhar has viewed that increase in the prices of petrol and diesel is not due to the global market. PDM has destroyed the economy due to which the value of Pakistani rupee has fallen drastically against the dollar.
Therefore, all imported goods, including oil, will become more expensive. All this thanks to regime change, he added.
Asad Qasir tweeted, “A huge hike of Rs 35 in petrol prices is a proof of open hostility towards the people. People are already grinding in the mill of inflation and it is difficult to get two daily bread.
‘Imported Govt crushed masses’
Pakistan Tehreek-e-Insaf chairman and Ex-PM Imran Khan on Sunday said the ‘corrupt’ and ‘incompetent’ PDM government has ruined Pakistan’s economy.
In his tweet, Imran Khan said the government has crushed the masses and salaried class by hiking petroleum prices. Hike in electricity and gas prices and 35 percent unprecedented inflation expected with Rs200 billion mini-budget. It may be noted that Finance Minister Ishaq Dar on Sunday announced Rs35/ litre hike in the prices of petrol and diesel.
