- Tomorrow, the government is expected to raise the price of petroleum products for the next two weeks.
- According to the sources, the price of petrol will rise to Rs190 per liter if the government withdraws all subsidies.
- If the subsidy is removed, the prices of diesel and kerosene will rise to Rs230 and Rs176 per liter, respectively.
Ahead of Pakistan’s talks with the International Monetary Fund (IMF) to restart the $6 billion loan program, the government is considering gradually withdrawing the subsidy on petroleum products.
According to sources, the government received a summary of POL prices from the Oil and Gas Regulatory Authority (OGRA) on May 16.
The government is likely to gradually phase out subsidies on all petroleum products, according to sources close to the situation, as the decision on fuel prices for the next two weeks is expected on Sunday (tomorrow).
Federal Defence Minister Khawaja Asif, who was in London with Prime Minister Shehbaz Sharif to finalize the strategy, stated that “major decisions” will be made in the next 48 hours to address the ongoing financial crisis.
The government is currently providing an Rs29.60 per liter subsidy on petrol, according to sources, who added that the fuel subsidy will cost the national kitty Rs45.14 beginning May 16 if petrol prices are not increased.
According to the sources, the price of petrol will rise to Rs190 per liter if the government withdraws all subsidies.
Similarly, the government provides a subsidy of Rs73.04 per liter for diesel and Rs43.16 for kerosene. If the subsidy is removed, the prices of diesel and kerosene will rise to Rs230 and Rs176 per liter, respectively.
However, if diesel and kerosene prices are not raised, the government will be forced to provide subsidies of Rs85.85 and 50.44 per liter beginning May 16.
In addition, the government currently provides an Rs64.70 per liter subsidy on light diesel, which will rise to Rs68 from Monday if prices remain unchanged.
Light diesel will be sold at Rs186.31 per liter if the government removes all subsidies, according to the sources.