Petrol Prices Likely To Surge By Rs45 From Tomorrow

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    The federal government will take a key decision on a hike in fuel prices ahead of Pakistan’s talks with the International Monetary Fund (IMF).

    The government is mulling withdrawing the subsidy on the petroleum products in a gradual manner for the revival of the $6 billion loan programme from IMF.

    According to the sources, the government has received a summary from the Oil and Gas Regulatory Authority (OGRA) for the POL prices from May 16.

    The government is likely to gradually abolish subsidies on all the petroleum products, the sources privy to the matter said as the decision about the fuel prices for the next fortnight is expected on Sunday (tomorrow).

    Federal Defence Minister Khawaja Asif, who was in London along with PM Shehbaz Sharif holding discussions with the party supremo Nawaz Sharif to finalise the strategy, said that “major decisions” will be taken in the next 48 hours to address the ongoing financial crisis.

    At present, the government is providing a Rs29.60 per litre subsidy on petrol, the sources said, adding that the fuel subsidy will cost the national kitty Rs45.14 from May 16 if the prices of petrol are not increased.

    The price of petrol will surge to Rs190 per litre if the government withdraws all the subsidy on it, said the sources.

    Likewise, the government is giving Rs73.04 per litre subsidy on diesel and Rs43.16 on kerosene. The rates of diesel and kerosene will jump to Rs230 and Rs176 per litre if the subsidy is abolished.

    However, if the prices of diesel and kerosene are not increased, the government will have to give subsidies on the products by Rs85.85 and 50.44 per litre respectively from May 16.

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