Federal Minister for Finance and Revenue Shaukat Tarin has stated that the government’s decision to increase petrol prices has impacted the national kitty, as well as common people, adding that the government is losing an average of Rs.70 billion per month in FY2022.
“Following the 166% increase in international petroleum prices since November 2020, the [Government] is continuously losing its revenue from Sales tax [and] levy, just to protect common people from higher prices. In FY22 alone, Govt on an average lost Rs70bn /month [and] Rs. 840bn for full year,” Tarin wrote in a statement on Twitter.
The finance minister said the government was absorbing much of the cost associated with the international increase in petrol prices, exacerbated most recently by brinkmanship on the Ukraine-Russia border, in an effort to shield ‘common people’ from even higher prices.
Last week, the government announced a historic price increase, raising the price of petrol by Rs.12.03 per litre to account for international prices.
Opposition members slammed the decision, pointing out that families, already burdened with high inflationary prices, would now be even worse off.
The finance minister went on to state that the incumbent government has spent more an relief and financial assistance than any government prior, adding that the prime minister was pursuing additional avenues for relief, despite the recent salary increase for civil armed forces personnel and federal employees and the Ehsaas Raashan programme.