Last Updated on: 19th July 2023, 03:57 pm
Diesel Petrol Prices Increased by Rs30 in Pakistan
The federal government dropped a fuel bomb on the country on Wednesday after it was electrocuted earlier that day to meet conditions imposed by the International Monetary Fund (IMF) for the resumption of the Blocked Loan Program signed with the lender worldwide the old PTI -Regime.
The federal government has hiked prices of all but one petroleum product by Rs. 30/- just a week after a similar hike, hours after the National Electric Power Petroleum Regulatory Authority (Nepra) approved an increase of a massive Rs 7.91 per unit. in the electricity tariff.
The new fuel prices will come into effect from midnight: Petrol is Rs 209.86 per liter, High-Speed Diesel (HSD) is Rs 204.15, Kerosene is Rs 181.94 and Light Diesel is Rs 178.31. Only the price of kerosene has increased by less than 30 rupees.
With the new electricity tariff increase, the price for a unit should rise from Rs 16.91 to Rs 24.82.
Despite an inevitable price spike that will set off a sharp wave of inflation, the coalition government has yet to reach an agreement with the International Monetary Fund that still requires agreement on the budget for the fiscal year 2022-23.
But Finance Minister Miftah Ismail has given no guarantees to scrap gas and electricity subsidies for the wealthiest and fuel allowances for cabinet members, judges, generals, and bureaucrats.
Speaking at a news conference in Islamabad, Finance Minister Miftah Ismail said the government still faces a loss of around Rs.
The minister added that the government is in daily contact with the IMF. “We cannot accept all of their demands, but there are some points that we have to agree to.”
He called for the withdrawal of oil product subsidies announced by former Prime Minister Imran Khan to avoid financial losses.
“Regardless of what the IMF says, the government cannot sell gasoline and diesel at a loss.”
However, Miftah said the government will guarantee stable prices for sugar and wheat at Rs 70/kg and Rs 40/kg respectively in supply stores across the country.
The minister added that the government is ready to import oil from Russia as long as there are no sanctions.
Nepra increased power prices primarily due to fuel prices, capacity cost payments, and the impact of the devaluation of the PAK Rupee against the US dollar.
The base tariff is set at Rs.24.82/kWh – plus an increase of Rs.7.9078/kWh, equal to the previously fixed current national tariff of Rs.16.91/kWh – set by the electricity regulator for the ongoing exercise.
This is the highest average rate for electricity consumers.
After the PML-N-led coalition government came to power, the electricity sector spiraled out of control due to prolonged power outages.
The recent rise in fuel and electricity prices will add to the misery of those already feeling the heat of runaway inflation.
Experts say rising fuel prices and tariffs would also lead to a new wave of inflation in Pakistan as it would increase the cost of doing business in the country.
Due to rising fuel and energy costs, the prices of all staple foods in Pakistan will continue to rise.
Nepra sent the increase to the federal government for issuance of a notice. The new rates will be applied after the government’s final communication, according to a statement.
“The tariff, once communicated, will be billed to consumers,” he added.
However, at the news conference, Miftah said the government has not yet decided to increase the electricity tariff.
According to Nepra’s statement, Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Quetta Electric Power Company (QESCO), Peshawar Electric Power Company (PESCO ) and Tribal Electric Supply Company (TESCO) have submitted applications for multi-year rates for fiscal years 2020-21 through 2024-25.
In addition, Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO), and Faisalabad Electric Supply Company (FESCO) had submitted annual requests for adjustment or indexation under the multi-year rate already approved.
The electricity regulator forecast the total gain from the increase to be Rs 1.15 trillion. It also forecasts capacity charges including National Transmission and Dispatch Company (NTDC) and High Voltage Direct Current (HVDC) costs of Rs.1.36 trillion.
Also Read: Petrol Prices in Pakistan Increased By Rs25, HSD By Rs40
The total revenue needs of XWDISCO, including DISCO margin and year-on-year adjustment, are forecast at Rs 2.80 trillion, with a forecast revenue of 113,001 GWh.
Nepra further said that MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO, and TESCO have been authorized to invest around Rs. 406,000/- over a five-year period for their distribution investment program.
However, the energy regulator trimmed XWDISCO and allowed T&D losses from 13.46% to 11.70% for fiscal 2022-23.
Also Read: Petrol Price Crosses Rs200 Per Litre
