Pakistanis get fuel price relief as global oil prices dip
Government swift to transfer benefit of reduction in global oil prices to masses: Sharif
Islamabad: Pakistan government has announced a reduction in petrol and diesel prices by Rs18.50 and Rs40.54 per litre respectively to offer some relief to the people enduring 13-year high inflation.
In an address to the nation, Prime Minister Shehbaz Sharif announced that the government is slashing prices to “pass on the reduction” in oil prices in global markets. The new price of petrol will be Rs230.24 per litre and high-speed diesel will cost Rs236 per litre after the reduction.
“The coalition government has been swift to transfer the benefit of reduction in oil prices to the masses. We will continue to provide relief as soon as we have financial cushion to do so” the prime minister said.
Sharif said his government had to raise the fuel prices to stabilize the economy disrupted by the precious government that offered unfunded subsidies for the oil and power sectors. “ With a heavy heart, and due to rising oil prices in international markets, we had to increase prices that burdened the poor. But we had no other way, we had to take tough decisions,” Sharif explained
“However, today with God’s blessing, oil prices are declining in the global market and hence the government is reducing the prices,” he said.
Bus and train fates reduced by 10%
Soon after the fuel prices were lowered, the cost of railway and bus travel also came down by around 5 to 10 per cent. Pakistan Railway has decided to reduce fares by up to 5 to 10 per cent while a 10 per cent reduction in inter-city bus fares was also announced.
The fuel price slash comes immediately after the International Monetary Fund (IMF) said it had reached a staff-level agreement with Pakistan that would pave the way for the disbursement of $1.17 billion if approved by the IMF board. The resumption of the IMF program will also help the country of 220 million access funds from other lenders.
The price decrease will be a massive relief for Pakistanis enduring high inflation. The relief comes after four fuel price hikes within a month (between May 26 and June 30) that increased petrol prices in Pakistan by 66 per cent or nearly Rs100.
