The government plans to raise the prices of petroleum products starting June 16, and Ogra will submit a summary to the Petroleum Division on Tuesday (today).
The final decision on the price hike for POL products will be made by Prime Minister Shehbaz Sharif.
According to sources, the federal government has been subsidizing petrol at Rs9.32 and light diesel at Rs8.8 since June 1st.
On June 1, all kerosene oil subsidies were eliminated. POL products currently have no sales tax or petroleum levy.
According to the sources, the IMF has demanded that the government eliminate all subsidies on POL products.
Furthermore, the government has not yet returned all of the subsidies on POL products.
On May 25, the government raised petroleum product rates by Rs30 per litre, or one-fourth of their previous levels, paving the way for a staff-level agreement with the International Monetary Fund by June 12.
On the one hand, the unprecedented decision will help defuse landmines laid by former Prime Minister Imran Khan’s government, and on the other, it will save the country from default.
