Govt. slashes POL price hike by half

KARACHI: Setting the example of an appreciating move, the government, after strong objections registered from opposition and allied parties, has taken back fifty percent rise in petroleum product prices, Geo News reported.

The slash of 50% is applicable on the recent 9.9 percent hike in POL product prices, which means after upping prices by 7 rupees, the government reversed the price by 3.5 rupees.

According to sources, in a major development late on Thursday night, the government announced that the recent increase in the POL prices was being slashed by half. This effectively means that instead of 9.9 percent increase in the prices, there would now be a 4.95 percent increase only.

Announcing the decision at a joint press conference with MQM leaders at the Sindh Governor’s House, Minister of Interior Rehman Malik said that there were many similarities in the PPP and MQM’s agenda.

He hoped that after this announcement, the transporters in Karachi would take back the strike call, which on Thursday had impacted business and social activities in the city. He said that for governments, it was difficult to take back decisions once announced and they would face problems in convincing the IMF. “Such decisions are taken under public pressure but then that is the strength of democracy.”

MQM leader Farooq Sattar said that his party had held a several hour-long session with the government team in this regard. Admitting that the economy was under pressure, he said that all issues can be resolved through talks. He credited Muttahida chief Altaf Hussain for the cut in the fuel price hike.

Speaking on the occasion, Finance Minister Dr Abdul Hafeez Sheikh said they had wanted that there should be no increase in petrol prices. However, the world has seen a 26 percent increase in petroleum prices while Pakistan raised prices by 9.9 percent only.

He said that they would take along their coalition partners and the people would be provided relief. He added that coalition partners would also be consulted while preparing the next budget.

Earlier, on February 28, the government had increased the price of high-speed diesel by Rs7.76 per litre to Rs86.09 and of petrol (motor spirit) by Rs7.23 per litre to Rs80.19 per litre. Similarly, the price of Kerosene oil had gone up by Rs7 per litre, HOBC by Rs8.58 per litre and Light Diesel Oil (LDO) increased by Rs6.60 per litre.

However, the increase was greeted by countrywide protests with almost all political parties strongly reacting to it. Tahir Hasan Khan adds: Earlier, Presidential spokesperson Farhatullah Babar said that Finance Minister Dr Abdul Hafeez Shaikh and Governor State Bank of Pakistan (SBP) Shahid Kardar called on President Asif Ali Zardari on Thursday night at the Bilawal House, where they agreed on a formula for a cut in fuel prices.

The economic managers briefed the president about the state of the economy and the steps being taken to address the challenges. The president emphasised the need for enlarging the social safety net for the poorest of the poor, broadening the tax base and giving special incentives for attracting remittances from the overseas Pakistanis through regular banking channels.

Earlier, the finance minister, along with the SPB governor, met a delegation of the Muttahida Qaumi Movement (MQM) at the Governor’s House and discussed the economic issues, including the latest fuel price hike. He also listened to the MQM’s reservations and demands in this regard.

The finance minister and the SBP governor went to the Bilawal House and briefed the president about their meeting with the MQM delegates. The three agreed on a formula to cut the fuel prices.

President Zardari separately met an ANP delegation, which called on him at the Bilawal House, and took them into confidence about the decision. The ANP team was led by the party’s president in Sindh Shahi Syed, who apprised the president of the problems being faced by transporters due to the increase in the fuel prices.