ISLAMABAD: The government announced a reduction of Rs10 per litre in the price of petrol effective from March 1 (today) despite a considerable price hike in petroleum products globally.
According to a statement from Finance Ministry, petrol would be sold at Rs149.86 per litre as compared to Rs159.86. Likewise, the price of high-speed diesel has been reduced by Rs10 per litre from Rs154.15 to Rs144.15.
The price of kerosene oil has been reduced by Rs1 per litre, from Rs126.56 to Rs125.56 whereas the price of light diesel oil has been slashed by Rs5.66 per litre from Rs123.97 to Rs118.31.
The statement said the global petroleum products’ prices were tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. It said the unprecedented increase was very risky for the domestic fuel prices and inflation and the situation left very few options for the government.
Prior to the current review, the government had left more than Rs70 billion per month to keep the prices lower and provide relief to the masses. According to the statement, in the fortnightly review, OGRA had recommended Rs10 per litre increase in petroleum prices, but the prime minister not only rejected the increase but also announced to decrease the prices of petroleum products by Rs10 per litre in his address to the nation in order to provide maximum relief to the masses despite limited fiscal space.
Address to nation
Prime Minister Imran Khan, in a big initiative to protect the masses from the impact of global inflationary trends, unveiled a major relief package, including Rs 10 per litre reduction in petroleum prices, Rs 5 per unit cut in electricity tariff and other relief measures.
“The government has decided not to increase the prices of petrol and diesel as well as electricity tariff till the next budget,” the prime minister said in his televised address to the nation.
The prime minister also announced to enhance the cash assistance, provided to eight million families under the government’s Ehsaas Programme, from the current Rs 12,000 to 14,000. He announced an internship programme for the unemployed youth, under which those with a graduate degree, would be offered Rs 30,000 per month through a transparent and merit-based system.
PM Imran Khan announced 2.6 million educational scholarships, saying Rs 38 billion would be allocated for the purpose. He also announced various incentives for the promotion of the information technology (IT) sector, including 100% tax exemption for companies and freelancers, 100 % waiver on repatriation of capital and foreign exchange, and elimination of capital gains tax for startups.
The prime minister said the investment from the overseas Pakistanis, including through joint ventures, would enjoy tax-holiday for five years. No questions would be asked from those who would establish industries.
He further said that the government would spend Rs 460 billion for the provision of interest-free loans to the youth under the Kamyab Jawan Programme to start businesses, low-income groups to construct their own houses, and farmers.
