Govt likely to reduce fuel prices after IMF approval

NEPRA approves reduction in KE tariff by Rs4.87 per unit

The federal government has reportedly decided to hold talks with the International Monetary Fund (IMF) to reduce the prices of petroleum products.

Sources said that Finance Minister Ishaq Dar will hold negotiations with the international lender to discuss a possible reduction in the prices of petroleum products and other relief measures to ease the burden of inflation on the general public.

However, they added that the levy on petroleum products won’t be changed.

Sources within the finance ministry further said that a final decision in this respect will be made after formal approval by the IMF. Currently, the petrol levy is Rs37.42 per litre and it is likely to be increased upto Rs50 per litre till January 2023.

Talking to journalists on Wednesday, Dar had said that his first priority is to improve the currency exchange rate.  “Zubair Umar and former finance minister Miftah Ismail did their best. The mess of four years could not be cleaned [up] in six months,” the new finance minister said while taking a dig at the previous Pakistan Tehreek-e-Insaf (PTI) government.

“Pakistan has been saved from bankruptcy… we will further improve it,” Dar said. “Give me few days, presently, I could not say anything about fuel prices,” he added.

“[The] rupee was stable at 104.5 against dollar in 2018 during the [previous] Pakistan Muslim League-Nawaz (PML-N) government. Our growth rate was 6.3 percent at that time. Inflation and price hike is a result of damage to the Pakistani rupee. This damage to the currency could not be reversed in six months,” the finance minister said.

“We were going to become the 18th largest economy of the world,” he lamented. “We have lost past three years and nine months,” he added.

Separately, the National Electric Power Regulatory Authority (NEPRA) on Thursday approved a reduction of Rs4.87 per unit for K-Electric consumers on account of fuel charges adjustment (FCA) for August 2022.

The decision to this effect was made during the hearing of the KE’s fuel adjustment application presided over by NEPRA Chairman Tauseef H Farooqi.

In a statement, the chairman said KE consumers will get a relief of more than Rs7 billion with the reduction in the power tariff.

Earlier this month, NEPRA had approved a reduction in power tariff by Rs4.12 per unit for KE consumers on account of the fuel cost adjustment for July 2022.

Meanwhile, Prime Minister Shehbaz Sharif on Thursday directed the authorities concerned to chalk out an urgent action plan for an uninterrupted supply of gas to consumers during the upcoming winter season.

The prime minister issued the directives while chairing a meeting in this respect. The prime minister warned that any negligence and maladministration in the provision of gas supply would not be tolerated.

He alleged that the previous PTI government had failed to purchase gas at cheaper rates from international market during the coronavirus pandemic. He regretted that the entire population, especially the common man, was suffering from the consequences of the ill-planning of the previous government.

He went on to say that his government believed in practical steps rather than boasting false statistics and making tall claims. The meeting was attended by former prime minister Shahid Khaqan Abbasi, Finance Minister Ishaq Dar, State Minister for Petroleum Mussadik Malik, Adviser Ahad Cheema and other senior officials.