Pakistan reels under Rs 60-billion dues to oil firms as PM Sharif refuses to hike fuel prices

Shehbaz Sharif, PML(N) leader and Pakistan PM

Pakistan Prime Minister Shehbaz Sharif has put an additional burden of around Rs 30 billion on the frayed exchequer by turning down a proposal from the country's oil and gas authority to raise fuel prices.

An amount of Rs 30 billion is already due on account of price differential claims due to keeping oil prices unchanged from April 1, 2022. The Pakistan government will be paying a price of Rs 60 billion to oil companies upon maintaining the existing oil prices for this month, reported ANI.

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Pakistan's Oil and Gas Regulatory Authority (OGRA) had proposed an increase in the price of diesel by Rs 51.32 per litre (35.7 percent), petrol by Rs 21.30 per litre (14.2 percent), kerosene by Rs 36.03 per litre (28.7 percent) and light diesel oil (LDO) by Rs 38.89 per litre (39.9 percent), reported The Express Tribune.

The prime minister's decision to not increase the fuel prices would add this Rs 30 billion to the price differential claims payable to the oil firms.

Sharif has also allowed power distribution companies to charge more from consumers, further burdening the people of the country, who are suffering from tax hikes, and high energy prices.

Amid the rising inflation in Pakistan, people will have to pay an additional cost of Pakistan Rs 4.8 per unit for the electricity they consumed since February.

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According to The Express Tribune, the National Electric Power Regulatory Authority (Nepra) jacked up the power tariff by Rs 4.8 per unit on account of fuel cost adjustment (FCA) for February. Power Distribution Companies (DISCOS) will charge fuel cost adjustment (FCA) of February 2022 in the billing month of April 2022 to all consumer categories.

Central Power Purchasing Agency (CPPA-G) had requested the Pakistani power regulator to allow a hike of Rs 4.9441 per unit to burden the power consumers with an impact of Rs 38.4 billion.

With inputs from agencies