Miftah Ismail, the Finance Minister, announced the federal government’s intention to raise the cost of petrol to Rs209.86 on Thursday.
The finance minister told a press conference in Islamabad that Prime Minister Shahbaz Sharif has approved a Rs30 per liter increase in petrol, diesel, and light diesel prices. The price of kerosene oil, on the other hand, has risen by Rs26.38 per liter.
The only item in which the government does not lose money is kerosene oil. We are, however, losing Rs8 on light diesel, Rs9 on petrol, and Rs23 on high-speed diesel,” Ismail said.
- Diesel — Rs204.15
- Petrol — Rs209.86
- Kerosene oil — Rs181.94
- Light diesel — 178.31
He agreed that the increase in gasoline prices will have the greatest impact on the lower-income sector of society. However, he added that the price of oil has also skyrocketed on the worldwide market. In response to a question, the finance minister stated that he hoped to reach a deal with the IMF in June. And, the government still needed to implement some reforms.
“Because the IMF wants to see our budget, the reforms we want to implement will be implemented prior to the budget. We do, however, communicate with the IMF on a daily basis “he stated
According to Ismail, the price increase was unavoidable. Moreover, he had to reach an agreement with the foreign money lender as an ex-finance.
We Import Oil from Russia
In answer to a question, the finance minister stated that the previous government made no significant efforts to import oil from Russia, an allegation made by the PTI. Ismail claims that when Khan’s visit to Russia ended, no publication mentioned Islamabad’s pact with Moscow the next day. “Please let me know if it is mentioned.”
However, he stated that the Russian officials informed Pakistan that the 2015 gas agreement had not been completed. “As a result, I won’t be able to compel the vendor,” Ismail explained. Pakistan will be willing to acquire low-cost oil from Russia if no sanctions are imposed on Islamabad, he said.
China Refinance Pakistan with 2.3 billion Dollars
China’s banks have agreed to refinance Pakistan with $2.3 billion in loans. Ismail had previously written on Twitter: “It’s good news. The terms and circumstances for the refinancing of an RMB 15 billion (about $2.3 billion) deposit by Chinese banks have been negotiated.”
After some customary approvals from both sides, the finance minister indicated that inflows are expected “shortly.” It will assist shore up the country’s foreign exchange reserves.
‘To keep wheat and sugar prices stable.’
To help people cope with the effects of inflation, the finance minister stated that the government would do everything possible to keep the price of sugar at Rs70 per kg and wheat at Rs40 per kg at utility stores. Ismail said that the government was subsidizing cooking oil by Rs100 and grains and pulses by Rs15 at utility stores across the country.
“While the subsidies on cooking oil and ghee will remain for some time, we will make every effort to maintain the rates of sugar and wheat unchanged, as directed by Prime Minister Shahbaz Sharif.”
Rates of electricity
The finance minister stated he had “not seen” the National Electric Power Regulatory Authority’s (NEPRA) report on today’s increase in electricity costs, but pledged that the increase would not be reflected in June’s bills. For the fiscal year 2022-23, NEPRA increased the base power tariff by Rs7.9078/kWh, increasing the burden of inflation on Pakistanis. The basic power rate is currently Rs16.91 per unit, and it would be more than Rs24 per unit with an increase of Rs7.9078 per unit.