Prime Minister Imran Khan will address the nation today at 6pm and is expected to make important announcements including an expected reduction in current petrol prices. In addition he is also expected to discuss the prevailing economic situation with the nation.
Defence Minister Pervez Khattak said that the prime minister would announce a reduction in petroleum prices by Rs10 per litre, for which a subsidy of Rs250 billion will be provided. Pervez Khattak said petroleum prices will not be increased for the next four months, in addition a reduction in electricity prices by Rs5 per unit and allowance of Rs10,000 per month to be paid to unemployed graduates.
Information Minister Fawad Chaudhry announced that “Prime Minister Imran Khan will address the nation this evening, taking the nation into confidence on the economy and global challenges after the Russia-Ukraine conflict”
An analyst while talking to Profit said “If the PM cuts the price of petroleum it will be done through reduction in Petroleum Development Levy (PDL). But he can also say that he is not increasing the price which maybe considered as a subsidy since petroleum prices are on a rise in the international market”
According to the analyst PDL currently stands Rs17.9 and can be brought down to Rs7.9.
Another analyst while talking to Profit said that the government is unlikely to reduce petroleum prices for everyone. “A Rs10 subsidy means a monthly expenditure of Rs10 billion on petrol alone. Government expenditure on high speed diesel will be separate”
However according to the analyst the most likely scenario is that the subsidy will only be for motorcycle and rickshaw drivers. Information Minister Fawad Chaudhry had earlier hinted that the government was working on devising an implementation plan to provide relief for motorcycle and rickshaw drivers.
Earlier it was also reported that prices of all key petroleum products are estimated to go up by Rs8 to Rs10 due to higher international oil prices, application of additional petroleum levy and currency devaluation.
In the international market crude oil price increased from $95 per barrel to $99 over the past fortnight, meanwhile the exchange rate has slightly depreciated.
