Govt mulling not hiking prices of petroleum products further despite increase in global market

ISLAMABAD: The federal government has banned the export of all petroleum products and is considering not hiking prices further despite a continuous increase in the global market and the drawdown of about Rs389bn in budget allocations for emergencies to absorb the future price shock as much as possible.

The decision comes after the latest estimates, based on existing tax rates and pricing formula, suggest that the price of high-speed diesel (HSD) going up by Rs56 per litre and that of petrol by Rs41. Petrol and HSD are currently sold on the higher side of Rs322 and Rs337 per litre, respectively, at retail.

Likewise, estimates also showed an increase of Rs7 and Rs53 per litre for the prices of kerosene and light diesel oil, respectively.

The next price review is scheduled for March 15 (Sunday) but ministers indicate these could be reviewed on March 13 (Friday).

Highly placed sources told Dawn that Prime Minister Shehbaz Sharif recently told a consultative session — attended by federal and provincial representatives — that he and the military leadership had jointly decided that after the initial increase, there would be no further price hike, at least in the near future, regardless of the prices in the Middle East.

The session, also attended by Field Marshal Asim Munir, was informed that the government would use block allocations for emergencies to absorb further price hikes.

The prime minister told the meeting that no other emergency could be worse than what the whole nation was facing at the moment because of fuel supply disruptions.

However, the sources said the cabinet members were still divided over the prime minister’s announcement and technocrats, particularly those........

© Dawn Business