The anticipation and joy among Pakistanis over a significant reduction in petrol prices turned into bewilderment as conflicting announcements regarding the price cut emerged from government offices. The controversy unfolded when two different prices for petroleum oil and lubricants (POL) were communicated—a substantial decrease by the Prime Minister’s Office (PMO) followed by a modest cut announced by the Ministry of Finance. Although the PMO later endorsed the price declared by the finance ministry, the conflicting statements caused widespread confusion and deep concern among the public, who were left grappling with the uncertainty.
Initially, the PMO proclaimed a substantial reduction in petrol price by Rs15.4 per litre and diesel by Rs7.9 per litre. However, the Ministry of Finance issued a belated notification revealing a different scenario, stating that the new petrol price had been reduced by Rs4.74 per litre to Rs268.36 from its previous price of Rs273.10 per litre. The price of high-speed diesel was also reported to have been slashed by Rs3.86 per litre to Rs270.22 from its earlier price of Rs274.08 per litre, effective from June 1.
The Ministry of Finance justified the price adjustment by citing a decline in global oil prices over the last fortnight, leading to a decrease in the prices of petroleum products in the international market. This adjustment was calculated by the Oil & Gas Regulatory Authority (Ogra), factoring in the international price variations.
The confusion was further exacerbated when the PMO acknowledged its error, admitting that the previous figures were mistakenly presented as the new prices. The corrected information was issued by the PMO later that night, adding to the uncertainty and raising questions about the accuracy and reliability of the announcements.
The backdrop of this controversy lies in the regular revision of petroleum product prices every 15 days in Pakistan, which is intricately tied to global oil price trends and the exchange rate of the Pakistani rupee against the US dollar. With about 85% of Pakistan’s oil requirements being imported, the country has been grappling with a balance of payments issue and soaring inflation, recorded at 17.3% year-on-year in April. As the public navigates through conflicting announcements and seeks clarity, the need for transparent and consistent communication from government authorities has become increasingly apparent, underscoring the complex factors that influence petrol prices in the country.
