Govt Likely To Increase POL Prices Tomorrow: Sources

The government is deliberating to withdraw the subsidy on the petroleum products in a gradual manner.

ISLAMABAD: (UrduPoint/Pakiatan Point News-May 14th, 2022) The government is deliberating to withdraw the subsidy on the petroleum products in a gradual manner ahead of Pakistan’s talks with the International Monetary Fund (IMF) for revival of $6 billion loan programme,

The sources said the government received a summary from the Oil and Gas Regulatory Authority (OGRA) for the POL prices from May 16.

They said the government, at the present, is providing Rs29.60 per litre subsidy on petrol. The fuel subsidy would cost the national kitty Rs45.14 from May 16 if the prices of petrol are not increased, they added.

The sources also said that the price of petrol woukd go up to Rs190 per litre if the government withdraws all the subsidy on it.

Similarly, the government was 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.

Besides this, the government is providing Rs64.70 per litre subsidy on light diesel currently and it will increase to Rs68 from Monday if the prices are maintained.

Light diesel would be sold at Rs186.31 per litre if the government withdraws all the subsidy on it, the sources added.

The sources said that OGRA apprised the Federal government about the growing subsidy on petroleum products.

The Ministry of Finance would make the final decision on the prices of petroleum products after consultation with the prime minister.