Following Prime Minister Imran Khan’s proposal of freezing petroleum product prices until the next budget, oil marketing businesses and refineries have informed the government that a gasoline crisis is emerging in the country.
Imran Khan, the Prime Minister of Pakistan, announced economic relief measures on Monday. The prime minister said in his address to the nation that the government was lowering gasoline, diesel, and electricity costs and that they would not be raised until the next budget, which will be released in June.
A virtual conference between the Oil and Gas Regulatory Authority (OGRA) and the petroleum division was convened in Islamabad in response to the impact of PM’s declaration, in which oil marketing corporations and refineries expressed severe concerns and questioned the mechanism of fuel price adjustment.
PM Imran Khan announces economic relief measures in his address to the nation.
How can we sell petroleum goods at a low cost when we have to purchase them at a high cost on the worldwide market? And who will foot the bill for the price difference? Authorities questioned oil marketing companies and refineries at the conference.
The secretary of petroleum, according to reports, stated that the government was working on a price adjustment mechanism. The government, on the other hand, would pay later. Till then, oil marketing companies and refineries should bear the price difference.
Oil marketing businesses and refineries responded to the secretary of petroleum’s reaction by saying that the situation does not appear to be sustainable and that the country may suffer a disruption in petroleum product supply.
The government, on the other hand, should guarantee the price adjustment payments.
Petrol prices have been lowered by Rs10 per litre; rates will not be raised until the budget is approved.
Prime Minister Imran Khan surprised everyone on Monday by announcing that he was cutting petrol and gasoline rates by Rs10 per litre.
PM Imran Khan began his remarks by stating that everyone believes that rising commodities and oil prices are only a temporary occurrence. However, given the current scenario in Ukraine, the administration realised that prices on the international market would not decline.
PM Imran Khan further said that since Pakistan imports petrol, if the prices increase in the international market, there is nothing the government could do.
“In Pakistan, the price of petrol is still the lowest in the world,” the prime minister said, comparing petrol prices in other countries.
The new petrol price has been established at Rs149.86.
According to a statement released by the Finance Division, global petroleum prices are tracking the Ukraine-Russia conflict and have risen to $100 per barrel as a result.
“The unprecedented increase poses a significant risk to domestic fuel prices and inflation,” it said, adding that the government has few options.
It went on to say that OGRA has suggested a Rs10 per litre rise in petroleum product pricing in its fortnightly review, which is scheduled on February 28.
According to the statement, in his speech to the country, the prime minister not only rejected the riseOil but also revealed a proposal to decrease petroleum product prices by Rs10 per litre in order to provide maximum assistance to customers despite the restricted fiscal space.
