Petrol Prices in Pakistan Increased By Rs25, HSD By Rs40
The federal government will make a key decision on a fuel price hike today as fuel price subsidies are expected to expire ahead of talks with the International Monetary Fund (IMF) starting May 18, Some news media reported.
According to the sources, fuel prices will gradually rise after Ogra informed the government about an increase in the subsidy per liter of petroleum products.
“The government is providing a subsidy of Rs. 29.60 on petrol prices and from May 16 it will be further increased to Rs. 45.14 per liter,” they said, adding that the subsidy per liter of diesel will come into effect on May 16 would be 85.85 rupees. while with kerosene oil, it would be Rs 50.44.
After the full subsidy is removed, the prices of petrol, diesel, kerosene, and light diesel per liter would be Rs 195, Rs 230, Rs 176, and Rs 186.31, respectively.
“The devaluation of the rupee could also lead to a further rise in fuel prices,” they said, adding that a final decision on the matter would be taken after Prime Minister Shehbaz Sharif’s approval.
Earlier, Finance Minister Miftah Ismail said that the Treasury faces a loss of Rs 102 billion in oil products every month.
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“The government bears a loss of 30 rupees per liter of oil,” said the Pakistani finance minister. “However, the decision to raise oil derivatives prices has not yet been made,” he said.
Ismail said in a news conference that the government has never sold petrol at a loss because the economy can’t afford it, adding that the Treasury would lose Rs. 102 billion if fuel prices didn’t rise in May.
Also Read: Pakistan Increases Petroleum Prices To 5.92 Rupees Per Liter