The Shehbaz Sharif government in Pakistan on Thursday announced that prices of all petroleum products would be hiked by Pakistani Rs 30 immediately.
After the increase, the price of petrol will be at Rs 179.85, diesel at Rs 174.15, kerosene at Rs 155.95 and light diesel at Rs 148.41. Finance Minister Miftah Ismail made the announcement at a press conference in Islamabad, a day after talks between the Pakistan government and the International Monetary Fund (IMF) in Qatar failed to reach an agreement on an economic bailout and the IMF staff-level agreement for the revival of the $6 billion programme ended.
The hike in fuel prices is being seen as an attempt to placate the IMF to quickly agree to an economic bailout. Dawn reported this was the “highest-ever” increase in prices of all petroleum products. It added the government was considering other reform measures, including readjusting the electricity tariff.
“A top official said the IMF had not only demanded complete withdrawal of subsidy on petroleum products but also the revival of petroleum levy and general sales tax. However, the government explained that such an abrupt shock was unaffordable, both politically and economically, and hence a promise was made for gradual tapering off financial burden on the budget,” Dawn reported.
Not surprisingly, the move has been lambasted by former prime minister Imran Khan.
Imran took to Twitter late on Thursday to point out that the Shehbaz Sharif government had not considered an option to buy oil from Russia. Imran had repeatedly alleged the US had pushed for his removal after he sought to maintain a neutral line on the conflict in Ukraine.
Imran tweeted “Nation starting to pay price for Imported govt's subservience before foreign masters with 20% / Rs30 per litre hike in petrol & diesel prices - the highest single price hike in our history. The incompetent & insensitive Govt has not pursued our deal with Russia for 30% cheaper oil.”
Imran pointed out India had purchased oil from Russia and reduced fuel prices. He wrote “In contrast India, strategic ally of US, has managed to reduce fuel prices by Pkr 25 per litre by buying cheaper oil from Russia. Now our nation will suffer another massive dose of inflation at the hands of this cabal of crooks.”
Imran has repeatedly claimed Russia had offered oil at cheap prices to Pakistan. Earlier this week, a Pakistani bureaucrat had told The News International there was no “no documentary evidence in the petroleum division of Russian offer of cheap LNG, crude oil and POL products as repeatedly claimed by former premier Imran Khan.”
