Mohsin Siddiqui (Chief Reporter)
The Pakistani government announced on Friday a reduction in the prices of petrol and high-speed diesel (HSD) by Rs4.74 and Rs3.86 per litre, respectively. This reduction stands in stark contrast to the earlier figures publicized by the Prime Minister’s Office (PMO), which had mistakenly announced a much larger reduction.
The PMO had initially notified a significant reduction in fuel prices, with petrol seeing a cut of Rs15.39 per litre and HSD a reduction of Rs7.88 per litre. This announcement was celebrated as a “big relief” and even highlighted on the Government of Pakistan’s official social media channels, causing a surge of excitement and joy among consumers. However, this joy was short-lived.
The discrepancy arose due to a mix-up in files. The PMO’s announcement was actually a repeat of the decision from May 15, which had implemented those exact reductions. This old file was mistakenly shown to Prime Minister Shahbaz Sharif for approval, leading to the erroneous announcement.
The finance ministry, on the other hand, had suggested a more modest reduction of Rs4.74 per litre for petrol and Rs3.86 per litre for HSD, based on consultations with the Ministry of Energy and the Oil and Gas Regulatory Authority (Ogra). This was in line with the formal summary sent to the PMO for approval. The finance ministry’s recommendations were rooted in the current economic scenario and international market trends, which justified a smaller reduction in prices.
As the media and public buzzed with the news of significant price reductions, the finance ministry, along with Ogra and the Ministry of Energy, quietly contradicted the PMO’s statement. This contradiction continued late into Friday night, creating a wave of confusion among the public and stakeholders.
In the early hours of Saturday, the Ministry of Finance finally set the record straight. In a late-night announcement issued around 12:38 AM, the ministry confirmed the revised prices, attributing the reductions to a decreasing trend in international petroleum product prices over the past fortnight. This correction aligned with the finance ministry’s initial suggestions and was seen as a pragmatic move, especially with the looming International Monetary Fund (IMF) bailout and the necessity for fiscal prudence.
The adjustments in petrol and HSD prices, Ogra also announced a reduction in the price of an 11.8kg domestic LPG cylinder by 1.6%, equivalent to Rs45.62, for June. This adjustment brought the price down to Rs2,768.23 from the earlier Rs2,813.85 per cylinder.
Kerosene and light diesel oil (LDO) also saw price cuts of Rs1.87 and Rs3.88 per litre, respectively. The government did not announce the new prices for these products, leaving some ambiguity in the market.
In a detailed notification, Ogra explained the reduction in LPG prices. The price cut was primarily due to an exchange rate gain and a decline in international prices, despite a 2% increase in the Saudi Aramco-Contract Price (CP). The average dollar exchange rate saw a minimal decrease of 0.04%, contributing to the reduction in LPG consumer prices.
While the revised prices of Rs268.36 per litre for petrol and Rs270.22 per litre for high-speed diesel still represent a reduction, the initial euphoria among consumers was dampened by the correction. The confusion highlighted the importance of accurate communication from government bodies, especially on matters that directly impact the public.
