ZAHEER ABBASI

ISLAMABAD: The government has announced that it will pass on half of the benefit of decline in petrol and diesel prices to general public while the rest would be used to offset some of the financial impacts for not making increase in kerosene and light diesel oil prices.

While announcing Rs 1.80 per liter cut in petrol prices and Rs 2.5 decrease in diesel as opposed to Rs 3.67 and Rs 5. 07 per liter slashes in the aforementioned fuels prices, which were recommended by Oil and Gas Regulatory Authority (Ogra), finance minister Ishaq Dar said the new prices would be applicable for a period from midnight August 6 to August 31. The new prices will be Rs 69.50/litre for petrol and Rs 77.40/liter for diesel (HSD). 

He said that the full impact was not being passed on to the people to absorb the impact of price increases in kerosene and light diesel recommended by the Ogra.

The minister stated that Ogra recommended Rs 10.01 per liter increase in light diesel price and Rs 13 in kerosene oil; however, the government has decided to keep the prices unchanged.

Dar said he held a detailed discussion with Prime Minister Shahid Khaqan Abbasi about petroleum prices in the country from August 6-31.

He said that on a summary of OGRA, Finance Division takes decision about petroleum prices with the approval of prime minister but there was constitutional vacuum on July 31, 2017 as there was neither prime minister nor the cabinet.

“Secretaries decided to maintain the status quo,” however, good thing was done by them was that they have made some adjustment to ensure the benefit of maintaining status quo should go to treasury instead of somewhere else, he added.