ISLAMABAD: Former finance minister Miftah Ismail on Friday criticised the government over the recent increase in petrol prices, saying the move had placed an additional burden on the public while raising questions about the structure of fuel taxes.
Speaking on a private television programme, Mr Ismail said the government had repeatedly claimed it was absorbing the financial burden of rising fuel costs.
He noted that Prime Minister Shehbaz Sharif had addressed the nation twice in March and maintained until last week that the government was bearing the cost.
However, he questioned what had changed within a week that led to an increase in petrol prices.
Mr Ismail said that at a price of Rs458 per litre, around Rs187 was being collected in taxes, adding that the government should not have bought expensive petrol only to sell it at a lower price earlier.
He argued that instead of increasing the price by Rs55 per litre, the government could have adjusted the tax structure more effectively to reduce the burden on consumers.
The former finance minister also pointed out that diesel still carried around Rs38 in taxes, claiming that the public had effectively been given another hidden shock.
Mr Ismail further questioned the Rs8.64 margin being given to petrol pumps, saying such a mechanism was uncommon globally where profits typically go to the retail outlet or company selling the fuel.
He added that the Rs7 charge under the Inland Freight Equalisation Margin (IFEM) was meant to ensure uniform petrol prices across the country.
Meanwhile, the government recently announced an Rs80 per litre reduction in petroleum levy, bringing the petrol price down from Rs458 to Rs378 per litre.
Read also: PM announces Rs100-per-litre fuel subsidy for motorcyclists
Prime Minister Shehbaz Sharif has announced a major relief package aimed at easing the burden of rising fuel prices, with a special subsidy for motorcyclists across Pakistan.
In a address to the nation, the prime minister said motorcyclists will receive a subsidy of Rs100 per litre on petrol for one month to support millions of citizens who rely on motorcycles for daily commuting and livelihoods.
