Abbasi criticises govt over inconsistent policies, calls for fuel price deregulation

Awaam Pakistan President and former prime minister Shahid Khaqan Abbasi on Saturday criticised the government over what he described as flawed governance and inconsistent policymaking, urging authorities to deregulate petrol prices and promote electric vehicles (EVs) to ease the country’s economic burden. The criticism came after the government on Thursday increased the petrol price by Rs137 per litre, taking it to a record Rs458.4; however, a day earlier, Prime Minister Shehbaz Sharif, in a televised address, announced a Rs80 per litre reduction in the petroleum levy on petrol, bringing its price down to Rs378 per litre. Read: PM announces Rs80 cut in petroleum levy, lowering petrol price to Rs378 per litre Addressing a press conference at the National Press Club today, Abbasi said that no country in the world fixed oil prices administratively, as these were determined by market forces. “Petrol prices should be deregulated and left to private companies to import and sell fuel,” he said, adding that a similar discussion had taken place in parliament in 2018, and the decision was considered appropriate. He maintained that a competitive market environment already exists and that deregulation would yield immediate results. “You will begin to see a difference from day one,” he remarked. Abbasi noted that petrol and diesel cannot be sold below their purchase cost, recalling that a similar attempt had been made in 2022. He said such decisions must be taken in light of ground realities, particularly during periods of global uncertainty when prices fluctuate. The former premier also criticised the absence of a consistent long-term policy, pointing to abrupt changes in fuel prices. “Petrol and diesel prices went up to Rs450, and within 24 hours they were reduced again,” he said, adding that Pakistan had yet to formulate a stable policy framework, particularly for electric motorcycles. Also Read: Govt triggers fuel shockwave with massive price hike He observed that despite a decline in the cost of electric motorcycles, policy failures had made both conventional fuel and electric vehicles expensive. “This reflects our policy shortcomings,” he said. Highlighting the burden on citizens, Abbasi said an average motorcycle user spends around Rs7,000 per month on fuel, of which approximately Rs3,000 goes to the government in the form of taxes. “This is a tax that can be easily collected from the common man, but not from shopkeepers or parliamentarians,” he added. He further criticised what he termed ad hoc decision-making, saying that minor reductions in fuel prices — such as Rs80 — offer little real relief to the public. While acknowledging that global fuel prices were high, he stressed that domestic policy failures also contribute to the crisis. Referring to recent official statements, he said concerns about disruptions such as halted shipping routes were also being cited, but insisted that internal issues remained central. Abbasi emphasised the need to strengthen the economy through structural reforms. “Deregulate petrol and promote electric vehicles by reducing their prices. This can begin to reduce the burden by $6 billion,” he said, citing China’s example as a successful model. He also criticised subsidy-based approaches, warning that distributing funds increased corruption without addressing underlying issues. “We say we will give money to farmers — even Rs200 billion — but handouts are not a solution,” he said. On renewable energy, Abbasi said Pakistan had witnessed a “solar revolution” driven by the public rather than government policy. He claimed that around 26,000 megawatts of solar capacity had been added without prior planning or a clear policy framework.