Finance Minister Miftah Ismail on Thursday vowed to provide the nation “relief” in petrol and diesel prices in light of declining global crude oil prices and the agreement with the IMF.
“After this agreement and the recent decline in international oil prices, God willing, we will now be able to provide relief to our people,” he said in response to a tweet by journalist Hamid Mir.
The journalist had asked the minister to also thank the public who had paid the price for the IMF’s demands.
سر اس معاہدے کے بعد اور تیل کی بین الاقوامی قیمتوں میں حالیہ کمی کے بعد انشاء اللہ اب ہم اپنے عوام کو رلیف دے سکیں گے۔ اور اپ درست ہیں: پاکستانی عوام مبارکباد کے مستحق ہیں۔ اور میں ان کا شکر گزار بھی ہوں۔ https://t.co/tIzenHhLfa
— Miftah Ismail (@MiftahIsmail) July 14, 2022
Meanwhile, some media reports claim that the government is going to reduce the prices of petroleum products from today instead of waiting till July 15.
In a separate statement, the minister said they have received a summary of the reduction in petroleum products’ prices from the Oil and Gas Regulatory Authority (Ogra) recommending a cut in prices and the Fund has no objection to it. “Prime Minister Shehbaz Sharif wants to give immediate relief to the people,” he added.
“Nations see difficult times and the Pakistani nation understands the situation during crises but now the time to give relief to the nation after difficult times has come,” the minister said further.
Currently, the per litre price of petrol is Rs249.40 and diesel is being sold for Rs276 per litre. The new price of petrol has been proposed at Rs219.70 per litre and diesel Rs241.30 per litre, according to media reports.
Earlier in the day, the Fund released a statement confirming that a staff-level agreemt had been reached with the Pakistani authorities.
According to the statement from the IMF, a “staff level agreement” – which is still subject to board approval – will bring to $4.2 billion the amount dispersed under an extended fund facility (EFF) that could increase to $7 billion and stretch until June next year.
It may be mentioned here that the coalition government led by the PML-N enhanced the price of petroleum by 66 to 95 percent in its three month tenure. It has so far made per litre price hikes of Rs99 in petrol, Rs132 rupees in diesel, Rs111 in kerosene oil and Rs100 light diesel oil.
According to a report by Reuters, Global benchmark Brent crude tumbled $7 to below $100 a barrel on Tuesday on a strengthening dollar, demand-sapping Covid-19 curbs in top crude importer China, and rising fears of a global economic slowdown.
On Tuesday, the PM had sought a summary from the ministries of finance and petroleum, carrying a proposal for a reduction in the prices of petroleum products to ease inflationary pressure on the masses.
