-Gives electric shock, Petro bomb in one go
-Raises POL prices by Rs. 30 per liter, electricity by Rs. 7.9 per unit
-New prices for Petrol become Rs209.86, Diesel Rs204.15, kerosene Oil Rs181.94 and light Diesel Rs178.31
-Miftah says willing to import from Russia if US sanctions are not imposed
-PTI, JI slams imported govt for such increase
By Anzil Amin
ISLAMABAD: Finance Minister Miftah Ismail on Thursday announced that the federal government has decided to raise the prices of all petroleum products barring one by another Rs30 — just a week after making a similar increase.
The new prices will come into effect from midnight tonight, the minister said while addressing a press conference in Islamabad.
After the latest round of hike, petrol will be priced at Rs209.86, diesel at Rs204.15, kerosene oil at Rs181.94 and light diesel at Rs178.31. Only kerosene oil’s price was hiked by less than Rs30.
“The government is still facing a loss of around Rs9 in petrol despite a hike of Rs30 as we are not collecting any tax on the fuel,” the minister added. Ismail said the government was holding talks with the International Monetary Fund (IMF) on a daily basis, adding “we cannot accept all their demands but there are certain points that we have to agree to.” However, Ismail said the government would ensure stability in prices of sugar and wheat at Rs70 per kg and Rs40 per kg respectively at utility stores countrywide.
He insisted the subsidy on petroleum products announced by ex-premier Imran Khan had to be withdrawn to avert financial losses. “Irrespective of what the IMF says, the government cannot sell petrol and diesel in a loss.”
In response to a question, the finance minister said the previous government did not make substantial efforts to import oil from Russia — a much-touted claim that the PTI has been making.
Ismail said when Khan concluded his Russia visit, no newspaper mentioned Islamabad’s deal with Moscow a day after that. “If there is a mention of it, let me know.”
The finance minister added that ex-energy minister Hammad Azhar had written a letter to the Russian authorities about Pakistan’s willingness to import oil from Moscow.
“But they haven’t responded and we also contacted them through diplomatic channels, but they opted to not respond to our offer,” the finance minister noted. However, he mentioned that the Russian authorities told Pakistan that the country did not complete the 2015 gas agreement. “So I cannot force the seller,” Ismail said. He noted that Pakistan will be willing to import cheap oil from Russia, provided that no sanction will be imposed on Islamabad. The price hikes come after the government and the IMF failed to reach an agreement on an economic bailout mainly because of the former’s indecision on fuel and electricity subsidies and resultant next year’s budget uncertainties.
Earlier in the day, The National Electric Power Regulatory Authority (NEPRA) Thursday raised the basic power tariff by Rs7.9078/kWh for the next fiscal year 2022-23 increasing the burden of inflation on the people of Pakistan.
The decision has been taken in line with the International Monetary Fund’s demands and the power distribution companies’ requests. Currently, the basic power tariff is Rs16.91 per unit and with an increase of Rs7.9078 per unit, it will be more than Rs24 per unit.
The NEPRA cited an increase in fuel prices, capacity cost and the impact of the devaluation of the Pakistani rupee as reasons behind the significant increase in power tariff.
According to a statement issued by the regulatory authority, the tariff has been determined for the fiscal year 2022-23.
The statement further mentioned that:
• The energy purchase price was projected as Rs1,152 billion
• Capacity charges including National Transmission and Dispatch Company (NTDC) and high-voltage, direct current (HVDC) electric power transmission cost is projected as Rs1,366 billion.
• The total revenue requirement of XWDISCOs including DISCOs margin and prior year adjustment (PYA) is projected as Rs2,805 billion with projected sales of 113,001 GWh.
• MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO and TESCO have been allowed an investment of around Rs406 billion for their distribution investment programme for the five years.
• XWDISCOs allowed transmission and distribution (T&D losses have been reduced from 13.46% to 11.70% for the FY23.
“The determined tariffs have been intimated to the federal government and the uniform tariff so determined by NEPRA after incorporating the amount of subsidy/surcharges, intimated by the Government of Pakistan, is forwarded for notification,” the statement read.
Meanwhile, the opposition leaders hit out at the government for increasing the prices of petroleum products to a new high, saying the PML-N-led government was struggling to manage the economy.
Former information minister Fawad Chaudhry said the fresh hike in petrol rates meant the middle-class will be eliminated from the country.
Ex-planning minister Asad Umar said he saw the “reflection of slavery and not the finance minister of Pakistan at a press conference today”.
Jamaat-i-Islami cheif Sirajul Haq announced his party would begin a “public movement” from June 11 against price hikes.
