Petrol prices slashed by Rs10 per litre; rates not to be increased until budget

• PM Imran Khan says the prices would not be increased until the next budget, which is scheduled in June.
• The premier asks the Opposition to come forward with solutions to address the petrol issue.
• "Since Pakistan imports petrol, if prices increase in international market, there is nothing govt can do," he says.

ISLAMABAD: In a surprising move, Prime Minister Imran Khan on Monday announced slashing the petrol and diesel price by Rs10 per litre. 

At the outset of his speech, PM Imran Khan announced that everybody was of the view that increasing commodity and oil prices were a temporary phenomenon; however, in line with the ongoing situation in Ukraine, the government has realised that prices would not fall in the international market.

Criticising the Opposition for hurling unnecessary allegations at the PTI-led government, he asked them to come forward with solutions to address the petrol issue.

PM Imran Khan further said that since Pakistan imports petrol, if the prices increase in the international market, there is nothing the government could do.

Sharing details of petrol prices in other countries, the premier said that "in Pakistan, the price of petrol is still the lowest in the world.”

Among 190 countries, Pakistan stands at number 25 in terms of lowest petrol and diesel prices,” he said.

The premier further added that in Pakistan, the price of petrol is Rs160 per litre, while the price of petrol in India is Rs260, Rs185 in Bangladesh and Rs 200 in Turkey.

“If the government stops providing subsidies worth Rs70 billion, every worth then the price of petrol in Pakistan would have been Rs220 per litre,” he said.

The premier further said that he received a summary from the Oil and Regulatory Authority (OGRA) to increase charges by Rs10 per litre keeping in view the price hike in the international market.

“In order to provide relief to the people, I want to announce that instead of increasing the price of petrol and diesel we are reducing it by Rs10 per litre,” he said.

The premier further announced that the prices would not be increased until the next budget, which is scheduled in June.

New petrol price set at Rs149.86

According to a statement issued by the Finance Division, the global petroleum products’ prices are tracking the Ukraine- Russia war and resultantly surged to $100 per barrel. 

"The unprecedented increase is very risky for the domestic fuel prices and inflation," it said, adding that the situation leaves very few options for the government. 

It further added that in the fortnightly review, due on February 28, OGRA has recommended Rs10 per litre increase in the petroleum products’ prices. 

"The prime minister has 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 consumers, despite the limited fiscal space," the statement read.

The new prices of petroleum products with effect from March 1, 2022 will be as follows: