ISLAMABAD: Good news for drivers and households across Pakistan. The federal government has decided to keep petrol and diesel prices unchanged for the next fortnight following Eid-ul-Fitr.
This decision comes as global oil prices dropped sharply by more than 6 percent amid growing hopes of de-escalation in the Iran conflict. Reports that Pakistan helped deliver a US peace proposal to Iran, and Tehran’s willingness to let non-hostile oil vessels pass through the Strait of Hormuz, eased supply fears and pushed prices down.
Instead of passing on the benefit to consumers immediately, the government chose to hold prices steady. Sources say it will cut Rs 100 billion from the development budget to manage its finances. This means a 10 percent reduction in the current fiscal year’s development spending, bringing it down from Rs 1,000 billion to Rs 900 billion.
The saved money will now go toward emergency relief efforts and help control the rising fiscal deficit.
The Oil and Gas Regulatory Authority (OGRA) will send its recommendations to the Petroleum Division within two days. Prime Minister Shehbaz Sharif will take the final call on any future price changes.
Petrol pump owners threaten nationwide shutdown
However, the All Pakistan Petrol Pump Owners Association (APPPOA) reacted strongly to the news. They expressed serious concerns over the current mechanism used to fix petroleum prices.
Besides,Vice Chairman Noman Butt said around 15,000 petrol pump owners across the country are unhappy with the existing pricing formula. He urged Federal Minister for Petroleum Ali Pervaiz Malik to sit down with all stakeholders and take them into confidence.
For now, Pakistani consumers can breathe a little easier at the pump after Eid, but tension is building between the government and petrol pump owners over how fuel prices are decided in the future.
