ISLAMABAD:: Prime Minister Shehbaz Sharif on Friday decided to keep the prices of petroleum products unchanged for next fortnight at the cost of Rs34bn additional burden on public money, despite regulator’s push for a minimum 14-36pc increase in prices of various products.

As such, the ex-depot price of petrol and high speed diesel (HSD) would be available to consumers at existing Rs149.86 and Rs144.15 per litre, respectively. The ex-depot rate of kerosene and light diesel oil at Rs125.56 and Rs118.31 per litre would also remain static till April 30.

Speaking at a hurriedly called news conference with Miftah Ismail, former prime minister Shahid Khaqan Abbasi criticised former prime minister Imran Khan for taking “irresponsible, cruel and careless” decisions at a massive cost to the economy and named latest oil pricing as one of them as the government was forced to sell petroleum products even at lower than the cost of purchase.

Today, the government is taking loans to provide Rs1,200 on a tank full of petrol and Rs3,000 of HSD tank of 60 litres to the rich cheaper than the cost of purchase. There is not country in the world, not even the big oil producers like Saudi Arabia where the sale price is cheaper than purchase price. “This was a wrong decision for cheap political gains but at a huge cost to the economy, not only for now but in years to come”, said Mr Abbasi who also served as petroleum minister for four years.

He said Ogra had proposed Rs21 per litre increase in petrol price to Rs171 and that of HSD by Rs51 per litre to Rs196 for a breakeven price, without application of any tax, but after discussions for last three days, Prime Minister Sharif did not accept the summary and kept the prices unchanged because of Ramazan and also to examine the entire matter in detail in consultation with lenders. With impact of tax, the Ogra had worked out petrol and diesel price at Rs235 and Rs264 per litre respectively, he said.

The total impact of keeping the lower prices had a monthly impact of Rs200bn against full year social sector allocation of Rs250bn under the Benazir Income Support Programme.

Mr Abbasi said the impact of keeping the price lower than purchase price worked out to be Rs600bn for three months that was more than Rs520bn expenditure for running of the civil government for full fiscal year. If you calculate its monthly impact, the cost of imprudent decision worked out to be 150pc higher than the country’s defense budget.

He deplored that the country was run by those who had no care for the country and who did not even care to get such decisions pass through the cabinet or any other forum and no allocations were made in the budget nor given a thought where this money would come from. The same is the situation with gas sector and electricity sectors where one-man announced decisions in public speeches without any consideration to its lasting impact to the nation, which was illegal, imprudent and unconstitutional.

It may be recalled that, the Oil & Gas Regulatory Authority (Ogra) had on Thursday suggested an unprecedented and massive increase of up to Rs120 per litre increase (over 83pc) in the prices of petroleum products with effect from April 16 to recover full imported cost, exchange rate loss and maximum tax rates.

Published in Dawn, April 16th, 2022