Prime Minister Shehbaz Sharif Thursday rejected the Oil and Gas Regulatory Authority’s (Ogra) summary suggesting an increase in the prices of petroleum products, Information Minister Marriyum Aurangzeb said in a statement. “We cannot punish the people for the previous government’s worst incompetence, incapability and blatant mistakes,” she said. The Imran Khan-led government had agreed to the strict conditions of the International Monetary Fund (IMF) to raise petrol prices in order to get a loan, she said.
“Every effort is being made to not increase the burden on the public already troubled by inflation,” she added.
The price of petrol and high speed diesel will remain Rs149.86 and Rs144.15 per litre, respectively. Kerosene and light diesel oil will also continue to be sold for Rs125.56 and Rs118.31 per litre, respectively, says a news report.
This is the second time the prime minister rejected Ogra’s proposal for a price hike.
The move comes days after the International Monetary Fund (IMF) said the government had “agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review”.
Finance Minister Miftah Ismail returned to Pakistan on Monday after negotiating a deal with the IMF that may give some space to the new government to make a “people friendly” budget in June.
But an IMF statement issued after the talks indicates the deal does not equip the government with the tools it needs to clear, what Ismail described as, “the landmines planted” by the PTI government, i.e., facing the consequences of withdrawing fuel subsidies given by his predecessors.
Earlier in the day, the information minister issued two statements within a short span of time creating confusion about petroleum prices.
Initially, Aurangzeb stated that the prime minister had rejected the summary to increase fuel prices as he did not want to “punish” the public for the previous government’s “incompetence, incapability and mistakes”.
The prime minister cannot increase the burden on a public already troubled by inflation, she added.
However, shortly afterwards, the information minister issued another statement, saying, “The statement regarding petrol prices is withdrawn. It’s being updated and will be issued later.”
Subsequently, she issued a third statement saying the premier had rejected the summary and elaborating on the reasons.