The federal government has decided to keep petroleum product prices unchanged for the next fortnight.
On February 28, the federal government reduced the price of petrol by Re0.50 and that of the HSD by Rs5.31 for the next fortnight ending March 15.
Prime Minister Shehbaz Sharif on Saturday evening announced that the current prices of petroleum products will remain unchanged. Instead, the government aims to transfer the financial benefits arising from global oil price reductions directly to the public by implementing substantial cuts in electricity tariffs.
According to a statement released by the Prime Minister’s Office, preparations are underway to provide relief to the public by reducing electricity rates. A comprehensive and effective package is being formulated, with an official announcement expected in the coming weeks.
Prime Minister Sharif emphasized his commitment to prioritizing public relief since assuming office and assured that he would personally inform the nation about the upcoming measures.
This decision comes in light of recent trends in the global oil market.
Reports indicate that crude oil prices have experienced a decline, with U.S. crude oil (WTI) dropping by 54 cents to $66.68 per barrel and Brent crude oil decreasing by 64 cents to $69.91 per barrel. These reductions have created a financial cushion that the government plans to utilize to alleviate the burden of electricity costs on consumers.
Previously, sources had suggested that the decrease in global crude oil prices could lead to a significant reduction in domestic petroleum product prices, with potential cuts of Rs. 13 per litre for petrol and Rs. 10 per litre for diesel.
However, the government has opted to maintain current petroleum prices and instead channel the financial benefits into lowering electricity tariffs, aiming for a broader impact on the populace.
This strategy reflects the administration’s focus on providing substantial relief to citizens by addressing electricity costs, a significant component of household and industrial expenses.
The anticipated reduction in electricity tariffs is expected to have a positive ripple effect on the economy, potentially lowering production costs and consumer prices across various sectors.
The public awaits further details, which are to be unveiled by the Prime Minister in the near future, outlining the specifics of the relief package and the extent of the electricity tariff reductions.
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