Finance Minister Muhammad Aurangzeb has indicated that petroleum product prices are likely to increase further in the coming days.
Speaking on the matter, the finance minister stated that the government is taking austerity and cost-saving measures on the direction of the prime minister, but despite these measures, an increase in the prices of petroleum is likely to be seen soon.
Meanwhile, the Minister of Petroleum Division, Ali Pervaiz Malik, during the briefing of a Senate committee, said it is easy to discuss the crude oil prices on television, but crude oil would have to undergo the refinery process too. He said diesel prices shot up from $88 per barrel on March 1 to $149 per barrel on March 6. He added that cargo shipments that previously cost $700,000 are now costing around $7 million.
During the session, Senator Farooq H. Naek criticised the price hike, saying that while Israel launched missiles at Iran, the government had “launched a petrol missile” on the people of Pakistan. In response, the petroleum minister claimed that the price hike was made after government consultations, adding that the government previously purchased petroleum stocks for some $70 per barrel, but would now have to purchase them for around $120 per barrel.
He further explained that if prices were not increased, the difference would have become a huge circular debt. Providing subsidies, he said, might have led to shortages of fuel and unrest, including possible attacks on oil depots.
The minister said it takes around 20 days to import petroleum into Pakistan, and without immediate adjustment in the price of petroleum, oil companies might have stopped importing this fuel, and the nation could have been facing a fuel dryout. He took the example of Bangladesh, where such delays were responsible for unrest, and India, which is still giving subsidies on fuel.
Senator Farooq H. Naek raised the issue that who benefited from the increase in prices, bearing in mind that a large section of the population in Pakistan is poor and not in a position to pay the increased price of Rs55. The petroleum minister said in replying to the question that nobody derives pleasure from raising the prices of the public, but the decision has been made in challenging economic circumstances.
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