petrol price touches 400 in pakistan
Oil Crisis In Pakistan : Petrol Price Touches Rs 400 : Amid the Middle East crisis, Pakistan has repeatedly admitted that it lacks strategic oil reserves like India. Petroleum Minister Musadiq Malik admitted that Pakistan has only 5-7 days of crude oil left. The refined products available with oil companies can last only 20-21 days. This means that if the situation worsens, Pakistan will collapse. Pakistan has acknowledged India’s strength in dealing with the fuel crisis that has emerged amid the West Asian conflict for the first time.
He acknowledged Pakistan’s vulnerability during the global oil crisis, saying that unlike India, Pakistan does not have strategic oil reserves that would help New Delhi mitigate the impact of rising crude prices due to the Iran war. India is far ahead. We do not even have a day’s worth of oil. Pakistani Petroleum Minister Musadiq Malik made it clear that we are not that far ahead of India. They are far ahead. They have 60-70 days of oil reserves, which they can release with just one signature.
The minister further explained that Pakistan does not have even a day’s worth of petrol reserves, which has left the country’s energy infrastructure completely vulnerable to external disruptions. He attributed India’s economic strength to its excellent foreign exchange position and strategic planning. He said that India maintains strategic reserves with a reserve of $600 billion. This is helping them to deal with this crisis. Pointing out the adverse consequences of approaching the IMF to resolve the cash crunch, Malik said that India is not a part of the IMF programme and has protected itself by reducing tariffs when oil prices rise. India has many economic options. India has economic independence, while Pakistan is tied up by the IMF. In an interview with Samaa TV, Malik said, “We do not have strategic oil reserves, only commercial reserves.”
The owner’s admission comes after oil prices surged to $126 per barrel due to disruptions to shipping through the Strait of Hormuz. Pakistan is bearing a comparatively higher burden than India. Pakistan’s petroleum minister said Islamabad had to hold secret talks with donor agencies like the International Monetary Fund (IMF) to provide some reassurance to consumers. As per the budget agreement with donor agencies, Pakistan had to impose heavy taxes on the fuel to meet its fiscal deficit. Diesel prices also increased by 3-4 times, forcing the entire burden to be shifted to petrol. Subsidies for motorcyclists also had to be withdrawn, resulting in huge losses.
The energy crisis has led to widespread civil unrest across Pakistan. Prime Minister Shahbaz Sharif recently reduced petrol prices by 80 Pakistani rupees to 378 Pakistani rupees per litre.
According to the Pakistani English daily Dawn, with the consent of the IMF, the Shahbaz Sharif government has increased the prices of petrol and diesel by 6.51 Pakistani rupees and 19.39 Pakistani rupees per litre respectively for the week ending May 8. Although the ex-depot price is slightly less than 400 rupees per litre, the actual retail price at the petrol pump, including dealer margin and other charges, actually exceeds 400 rupees. After the petroleum levy was lifted, the price of diesel was initially reduced from 520.35 rupees.
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