ISLAMABAD – The Sharif-led federal government is likely to take a crucialdecision on a hike in fuel prices today ahead of talks with InternationalMonetary Fund (IMF).
Last month, the new government decided not to roll back billions in fuelsubsidies despite the strain on public funds, to avoid backlash days aftertaking power however OGRA has now prepared a summary of withdrawingsubsidies of Rs21 on petrol and Rs51 on diesel that will be increased forthe next fortnight.
Local media quoting sources from the Ministry of Energy reported that theprocedure to withdraw subsidies on petroleum products has been completedand a summary of increasing prices will be table today.
Following the revocation of the fuel subsidy, the prices of petrol, diesel,kerosene oil, and light diesel would be Rs190, Rs230, Rs176, and Rs186.31respectively.
The South Asian country earlier assured global lender to withdraw theenergy subsidy however, the government has not yet increased the prices ofpetroleum products due to the fear of backlash amid soaring inflation.
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The federal government will have to allocate another Rs76 billion for thenext two weeks of May if it decides to keep petroleum prices unchanged.
Many factors including skyrocketing prices in global crude oil prices andthe depreciation of the Pakistani rupee against the US dollar haveincreased the cost of petroleum product subsidy.
