Pakistan PM Shehbaz Rejects Fuel Price Hike Ahead of Eid al-Fitr

Prime Minister Shehbaz Sharif has rejected proposals to increase petrol and high-speed diesel (HSD) prices, opting instead for the federal government to absorb the financial burden ahead of the Eid al-Fitr celebrations. The decision, announced during a national address on the eve of Eidul Fitr, aims to provide relief to citizens amidst a challenging economic climate.

Global Fuel Crisis and Economic Challenges

The Prime Minister’s decision comes as Pakistan faces a global fuel crisis, exacerbated by geopolitical tensions in the Middle East. He noted the impact of the conflict on global peace and the economy, and specifically referenced attacks on energy installations in neighboring countries as contributing to the crisis.

Oil prices have seen a significant surge in recent weeks, climbing from $72 per barrel to over $158 per barrel in just three weeks, according to the Prime Minister. This increase has already led to an inflationary pressure, with previous price hikes in March affecting the cost of living for ordinary citizens.

Financial Implications of the Decision

Rejecting the latest recommendations for price increases – a Rs50 per litre increase for petrol and Rs74 per litre for HSD – will cost the federal government approximately Rs24 billion. Further recommendations to increase petrol by Rs76 per litre and diesel by Rs177 per litre were also rejected, adding an additional burden of Rs45 billion. In total, the government has allocated Rs69 billion from its savings and development budgets over the past two weeks to prevent price increases of Rs127 per litre for petrol and Rs252 per litre for HSD.

Focus on the Deserving

While acknowledging the financial strain on the government, Prime Minister Sharif emphasized the need to ensure that relief measures reach those most in need. He has instructed relevant ministries to develop a transparent mechanism to target assistance to the deserving and needy citizens, preventing benefits from extending to those who are well-off.

The Prime Minister extended Eid greetings to the nation, calling for national unity, collective responsibility, and compassion during the festival. He highlighted the importance of sharing the joy of Eid with those less fortunate.