The federal government on Friday announced a cut to the prices of petrol and high-speed diesel by Rs. 22/liter each, describing the move as an “Eid gift” for the public.
In a statement issued by the Prime Minister’s Office, Prime Minister Shehbaz Sharif claimed the government had fulfilled its promise to provide relief to the people whenever fiscal space became available. “Providing relief to the public remains among my top priorities,” he added.
The statement noted fuel prices were similarly reduced the previous week as part of ongoing efforts to ease pressure on consumers amid challenging economic conditions. It said the federal government maintained relief measures and fuel subsidies for public and goods transport, as well as for motorcycle and rickshaw users, even during difficult periods marked by high international oil prices.
According to the Prime Minister’s Office, Pakistan ensured uninterrupted availability of petrol and diesel at a time when several countries in the region faced fuel shortages and long queues at filling stations. It further said that the government had absorbed the impact of rising international oil prices by providing subsidies of more than Rs. 130/liter to shield consumers from higher fuel costs during the global oil crisis.
However, critics have noted that a significant portion of the ex-depot price of fuel products remains a hefty petroleum development levy, with prevailing consensus holding the excessive tax is used to make up for the FBR’s tax shortfall over its inability to expand the tax net.