Hike in petrol prices likely as govt plans to revert fuel subsidy

ISLAMABAD: Federal government will take a key decision on a hike in fuel prices today as subsidy on fuel prices will likely be reverted phase-wise ahead of talks with International Monetary Fund (IMF) from May 18, ARY NEWS reported.

According to sources, the fuel prices will be hiked phase-wise after Ogra conveyed to the government regarding an increase in per litre subsidy on petroleum products.

“The government is giving a subsidy of Rs29.60 on petrol prices and from May 16, it will be further hiked to Rs45.14 per litre,” they said, adding that per litre subsidy on diesel from May 16 would be Rs85.85 while on kerosene oil it would be Rs50.44.

After the elimination of complete subsidy, the prices of petrol, diesel, kerosene oil and light diesel per litre would be Rs195, Rs230, Rs176 and Rs186.31 respectively.

“The devaluation of rupee could also result in a further hike in fuel prices,” they said and added that however, a final decision in this regard would be taken after approval from Prime Minister Shehbaz Sharif.

Previously, Finance Minister Miftah Ismail had said that the government treasury bearing 102 billion rupees loss on account of petroleum products each month.

“The government is bearing per litre 30 rupees loss on petroleum,” Pakistan’s finance minister said. “However, the decision not yet taken to enhance the prices of petroleum products,” he said.

Ismail, in a press talk, said the government had previously never sold petrol at a loss because the economy could not afford it, adding that if fuel prices are not hiked in May, the treasury will lose Rs102 billion.