Government still giving subsidies on petrol and diesel: Miftah Ismail

• Miftah Ismail rejected an increase in electricity prices for June.
• Finance Minister held PTI government responsible for current load shedding. 
• Miftah Ismail says PTI government didn’t make LNG agreement for the long term.

Even after removing a lion’s share of Rs60 per litre of subsidy on petrol prices within a week, Finance Minister Miftah Ismail Thursday said that the government is "still giving subsidies on petrol and diesel,” Geo News reported.

In a bid to meet the International Monetary Fund's (IMF) demands, the finance minister jacked up the prices of petrol by Rs60, taking petrol to an all-time high of Rs209.86 in the country.

Miftah, a day earlier in a press conference, said that Prime Minister Shehbaz Sharif has approved hiking the price of petrol, diesel, and light diesel by Rs30 per litre, while the rate of kerosene oil has been hiked by Rs26.38 per litre, effective June 3.

"...kerosene oil is the only commodity which is not leading to losses for the government. However, we are facing losses of Rs8 on light diesel, Rs9 on petrol, and Rs23 on high-speed diesel," he said.

Speaking on Geo News programme Aaj Shahzeb Khanzada Kay Saath, Miftah Ismail said the government knew what demands IMF had put on the table, however, “we are negotiating on that”.

“Even after increasing Rs60 on petroleum prices, the government is still giving a Rs8 subsidy on petrol and Rs23 on diesel. We are moving step by step and after proposing the budget, we will reach a staff-level agreement with IMF," he said.

Ismail said ex-prime minister Imran Khan and finance minister Shaukat Tareen agreed with IMF to add an Rs30 levy and remove subsidy on petroleum products.

"Imran Khan first agreed with IMF and then violated it, however, he had no right of doing it and pushing Pakistan towards default," he said, adding that Imran Khan had deliberately taken that step to create hurdles for PML-N.

Ismail rejected an increase in electricity prices for June and held the PTI government responsible for the current load-shedding.

“[The] PTI government didn’t make an LNG agreement for the long term, thus for short term, we are compelled to buy LNG inexpensive rate. In addition, prices of coal have jacked up more than LNG, however, these issues will be resolved in 1.5 or two months” he said.

Speaking about former premier Imran Khan’s claim of buying 30 % cheaper oil from Russia, Finance Minister said the PTI government had written a letter to the Russian government only three days before the no-trust motion which Russia has yet to answer.

“If Russia or any other country give us oil and wheat on 30% cheaper rate, why would not we buy it? but for now, the government is in talk with Russia only for the procurement of wheat,” he said.

Ismail went on to say that no PM can feel happy while approving summaries related to fuel hikes as these are the "toughest decisions" but that it is inevitable for the country.