PM Shehbaz says hiking fuel price was necessary to avoid bankruptcy

[James]

<b>Prime Minister Shehbaz Sharif is addressing the nation for the first time since he took over on April 11.

His address comes a day after his government removed fuel subsidies and increased the price of petrol by Rs30.

The prime minister said the move to increase fuel prices was necessary to avoid Pakistan facing bankruptcy.</b>

Going after the previous government, he said it was because of them that he had to take the difficult decision to increase fuel prices.

"The previous government is deliberately concealing facts. I want to remind them that you entered into a deal with IMF, not us. You accepted their harsh terms, not us. You pushed the country into economic mess, not us."

Shehbaz said his government was starting a new relief package of Rs28 billion per month "to protect the poor from the burden of petrol and diesel price hike".

"Under it, 14 million poor families are being given Rs2000 [each]. These families comprise 85 million people."

He said this was in addition to the monetary assistance already being given to them under Benazir Income Support Programme. "This relief package will be added in the next budget," he said.

The premier further said that he had directed Utility Stores to set the price of 10kg sack of flour at Rs400.

https://www.dawn.com/news/1691762/p...-fuel-price-was-necessary-to-avoid-bankruptcy

 

[Kianig89]

So what would be his answer after the second hike SS has destroyed his fake legacy

 

[Major]

Decision made too late. By not doing this earlier what was he expecting? that prices in international market would go down?

Stop going after PTI and concentrate on how to run the govt.

Rs. 2000 per FAMILY is a joke and not needed. It makes no difference. Rs. 2000 is just peanuts. If you want to save families from the petrol and diesal hike than allow lithium batteries to be important for 0 tariff and reduce the tariffs on hybrid vehicles.

 

[JaDed]

Wow it’s already been more than 45 days since he came to power.

 

[Xoib]

I was wondering where and when they would start their next looting scheme so got my answer

 

[Xoib]

Those 14 million poor families are not seeing a single rupee from this

 

[Major]

Those 14 million poor families are not seeing a single rupee from this

How so? People are given what is promised by the govt. Only thing, you have to apply for it.

For example, many students from my time got laptops under shebaz scheme only.when they actually applied

 

[finalfantasy7]

so he didnt want to avoid bankruptcy by taxing the rich? including the petrol companies

 

[Vatta]

So he has had time to issue his brother with a passport, declare 3 of his houses as PM Houses, took his chums on a state funded Ummrah, jettisoned welfare programmes, neutered NAB to extricate himself, his family and chums, deprived overseas Pakistanis of a vote, got rid of the corruption ending EVMs, brought loadshedding back, given state security to dubious liars and criminals from Lahore, ran off to England to get instructions from absconders and criminals, delayed the dam projects and repressed human rights. Khan was getting pelters for the price of Hajj, under Cherry it has nearly doubled.

He has brough the country to it's knees. The knock on effect of this massive price hike will be hugely damaging for the country. It is high time that they stepped aside. Their intentions were only to protect themselves. They have no interest in seeing Pakistan prosper.

Go, in the name of God, Go.

 

[Extra_Cover]

I'm not a blind hater so I will appreciate whatever good is done by this government. The Rs 2000 to poor families is a decent measure but it would basically do nothing when petrol rises by Rs 30, wheat bags rises by Rs 200 almost and similar other inflationary measures across the market. Nonetheless, given the expansion of Ehsaas program we should now have a lot of poor families registered under the system so distributing this money to the poor should be relatively easy.

On the flip side if in the next budget we see any significant development related expenditure then rest assured that is clear cut looting given they just passed a NAB bill stating that any development related costs would not be held under accountable law. So watch out for that money in next budget.

 

[MenInG]

In a bid to cushion the impact of his government’s decision to withdraw subsidies on fuel, Prime Minister Shehbaz Sharif announced on Friday a new relief package of Rs28 billion per month to “protect the poor from the impact of inflation”.

In his maiden address to the nation a day after his government caved in and fulfilled IMF’s condition, the prime minister defended the move as a “necessary measure to prevent the country from going bankrupt” and blamed the previous government for “destroying the country’s economy”.

Under the relief package, Shehbaz said that the poor families across the country would be paid Rs2,000 each, while stipends would be given to the deserving families through the Benazir Income Support Programme (BISP), adding that the utility stores had been directed to sell 10kg flour bag at Rs400.

“We increased the prices of petroleum products with a heavy heart. We sacrificed political interests and preferred the national interest to pull the economy out of the current crisis,” he said. “We will take every decision and do everything possible to advance the journey of national development.”

He charged the former Pakistan Tehreek-e-Insaf (PTI) with destroying the national economy, saying that the Imran Khan-led government accepted the tough IMF conditions, which made people’s lives miserable. “The previous government provided subsidies on fuel for political gains,” he added.

“We are not responsible for the agreement with the IMF on tough terms, pushing the country into the darkness of economic quagmire and load shedding, burying the country under the worst debt burden in its history and stifling the economy, but the previous government is,” the prime minister said.

“We are launching a new relief package worth Rs28 billion per month to save the poor people from the burden of rising petrol and diesel prices,” the prime minister told the nation. He said that 14 million poor families, comprising 85 million people, would be given Rs2000 per family.

“This is in addition to the monetary assistance being provided to them under the Benazir Income Support Programme. This relief package will be made part of the next budget," he said. Furthermore, he added that he had directed the utility stores to set the price of a 10kg sack of flour at Rs400.

He stressed that former prime minister Imran Khan was removed from power on public demand and through democratic means. “The people of Pakistan wanted to get rid of the [previous] incompetent and corrupt rulers that is why we accepted the challenge,” he continued.

“Now, Pakistan will be run according to the Constitution and not at the whim of an individual. We will protect the lives and properties of the people at all costs,” he said, adding that the government had initiated consultations with all political parties to agree on a charter of the economy.

Recalling the tenure of the Pakistan Muslim League-Nawaz (PML-N), from 2013 to 2018, the prime minister emphasised that his party built several development projects and ended load-shedding in the country.

The premier berated the previous government for leaving behind "innumerable stories of corruption", adding that with their [PTI leaders] behaviour of victimization, anger and incivility, they have torn apart the social fabric and cultivated “a crop of hate”.

He said the former prime minister for the sake of his nefarious political designs, came up with the story of a false foreign letter.

However, the National Security Committee categorically stated twice that there was no conspiracy behind the ousting of the former prime minister and Pakistan’s ambassador to the United States also rejected the story of conspiracy, he explained.

“But the person was telling lies for his heinous political aims and was damaging Pakistan’s vital national interests.”

He said if any person thought his arrogance was above the constitution and national institutions he was wrong.

“Pakistan will move forward according to the constitution and not according to the arrogance of a person.”

He recalled that during the period of Nawaz Sharif, Pakistan was making distinctive progress but then Imran Khan staged the drama of sit-ins at a time when the Chinese President Xi Jinping was about to undertake a visit to Pakistan to sign the historic agreement of China Pakistan Economic Corridor (CPEC).

Express Tribune

 

[MenInG]

ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) senior leader Asad Umar has said that the incumbent coalition government is not independent in its decisions, ARY News reported on Saturday.

Reacting to Prime Minister Shehbaz Sharif’s address to the nation, Asad Umar said that the PM did not talk about the term in his speech, Marriyum Aurangzeb was threatening the nation to complete the term. The ‘imported government’ had been rejected by the people from the very first day. The nation knows that this government came into power through external power and the conscience of the people, Umar said and added these people are not capable of governing.

Asad Umar said that this government is dragging the country into a quagmire. Shehbaz Sharif was also present at the National Security Committee meeting which confirmed the letter. Interference in both the meetings of the National Security Committee was confirmed.

The PTI leader said that Imran Khan had said that he would not impose a burden on the people and would buy oil from Russia, but the Shehbaz Sharif government issued a royal decree to increase the fuel prices by Rs30 per litre. The government was not taking care of the masses.

He said that the announcement of the reduction of prices at utility stores is just an attempt to make the masses fool. The lecture on corruption does not look good from Shehbaz Sharif, the PTI leader said.

Imran Khan came to serve the country, and did not commit a single rupee of corruption, Imran Khan did not appoint any of his relatives to key posts

ARY

 

[MenInG]

After removing subsidies from petroleum products, the government is likely to increase the system gas tariff by 40-50% in its continued bid to revive the $6 billion International Monetary (IMF) programme, expecting the revenue requirement determination for the fiscal year 2022-23 by the Oil and Gas Regulatory Authority (OGRA) in June, The News reported Sunday, citing a senior energy ministry official.

The official said that the gas tariff hike will come into force from July 1, 2022. He said that both the companies responsible for Sui gas supply have faced "huge losses worth Rs550 billion together in the past years".

"Sui Northern Gas Pipelines Limited is facing a loss of Rs350 billion while Sui Southern Gas Company Limited is facing a loss of Rs200 billion mainly due to no raise in tariff as was required," the energy ministry official said.

He went on to say that from now onwards, the amended OGRA law in line with the IMF directions will derive the gas tariffs and their implementation.

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The IMF has asked the government to ensure from next budgetary year 2022-23 no more losses for both the gas companies because of stagnation of tariff and to implement the amended OGRA law in letter and spirit.

Under the amended OGRA law, the official explained that whenever the oil and gas regulatory authority will determine the revenue requirement for both the companies and accordingly announce the gas tariff, it will automatically be implemented after 40 days if the government does not respond to the determined tariff with any portion of subsidy for various consumers' categories.

The SNGPL has already sought 66% increase in gas tariff for financial year 2022-23 in its petition and SSGC has asked for an increase in gas tariff by 46%. OGRA may come up with its decision about an increase in tariff by mid-June, 2022 after due diligence of petitions of both gas companies.

"However, we have roughly been told that an increase in tariff may be at 40%, which may go up to 50% by adding 10% increase. The 10% increase will be used to offload the losses of Rs550 billion piled in previous years,” the official said.

“This 10% increase will continue to be part of the future tariffs in the years to come till the losses of gas utilities are not done away with".

OGRA earlier revised the average tariff for Sui Southern up to Rs670 per MMBTU, but since the revised tariff was not implemented by the ex- government, the gas utility still continued selling the gas at Rs600 per MMBTU. Similarly, the regulator revised the average gas tariff up to Rs829 per MMBTU, but its average sale tariff is still at Rs714 per MMBTU with no raise in sale gas tariff by the government.

The government implements the uniform tariff through subsidy and in case the estimated revenue requirement for financial year 2022-23 and the increase in gas tariff by 40-50% is announced by OGRA and even after 40 days' lapse, the government does not respond to it in terms of any subsidy, then it will be implemented automatically. Now the question arises as to how OGRA will implement the increase in tariff because it gives the differential tariff for both gas utilities.

The official also said that OGRA may come up with any advice to the government saying some portion of the increase in tariff may be used for reducing the losses of gas companies. To a question, the official said that the government extends the subsidy to the fertilizer sector, special commercial consumers such as roti tandoor and some domestic sector categories.

Currently, the gas tariff for domestic categories is at just Rs121 per MMBTU for the consumers who use 50 cubic meters of gas in one month and Rs300 per MMBTU for those who use 100 cubic meters of gas per month. The consumers who use 200 cubic meters gas pay Rs553 per MMBTU and those who consume 300 cubic meters pay Rs738 per MMBTU and those who utilize 400 cubic meters a month pay Rs1,107 per unit and those who utilize more than 400 cubic meters a month pay Rs1,460 per MMBTU.

GEO

 

[DRsohail]

I was wondering where and when they would start their next looting scheme so got my answer

Yes here we go.

 

[Cpt. Rishwat]

I'm surprised he raised prices at all, I would have thought this family would rather the country go bankrupt than lose their own position. I guess they had no choice as they would have been exposed even more as the looters who have parked assets abroad.

 

[JaDed]

IK is lucky here though tough decision is taken by PDM which was needed, now when he comes back to power he can be in a better position.

 

[DRsohail]

IK is lucky here though tough decision is taken by PDM which was needed, now when he comes back to power he can be in a better position.

That's why they are doing every illegal thing to stop him from coming back. Have you seen videos of the brutality of police force in recent azadi march? I am ashamed being a Pakistani to see that.

 

[WicketLord]

Another oil shock is on the cards as the price of high-speed diesel is expected to be increased by Rs24 per litre effective from August 16, 2023, which will fuel a new wave of inflation that is already at significantly higher levels.

As international oil prices surge, Pakistan may raise prices of petroleum products in the range of Rs12 to Rs24 per litre in its fortnightly review for August 16-31, 2023.

In addition to the huge increase in the cost of diesel, the government may jack up the price of petrol by around Rs12 per litre.

Petrol and diesel prices have already been raised by around Rs20 per litre in the previous revision for the first fortnight of August.

Experts say that loan conditions of the International Monetary Fund (IMF) have forced the government to pass on the rising cost of international commodity prices to the domestic consumers.

Over the past two weeks, the prices of refined petroleum products have gone up by $13 to $111 per barrel. Of these, petrol cost has climbed $7 to $97 per barrel.

 

[Hitman]

nother oil shock is on the cards as the price of high-speed diesel is expected to be increased by Rs24 per litre effective from August 16, 2023, which will fuel a new wave of inflation that is already at significantly higher levels.

As international oil prices surge, Pakistan may raise prices of petroleum products in the range of Rs12 to Rs24 per litre in its fortnightly review for August 16-31, 2023.

In addition to the huge increase in the cost of diesel, the government may jack up the price of petrol by around Rs12 per litre.

Petrol and diesel prices have already been raised by around Rs20 per litre in the previous revision for the first fortnight of August.

Experts say that loan conditions of the International Monetary Fund (IMF) have forced the government to pass on the rising cost of international commodity prices to the domestic consumers.

Over the past two weeks, the prices of refined petroleum products have gone up by $13 to $111 per barrel. Of these, petrol cost has climbed $7 to $97 per barrel.

In my state, petrol is Rs. 98.33 ($1.19), and diesel Rs. 90.63 ($1.09).