The public is about to be hit by a massive rise in fuel prices ministry of finance and oil is heeding removing subsidies on petrol following the regime change.
Finance Minister Miftah Ismail recently pointed out that the fuel subsidy for May and June would cost 96 billion rupees, something the government cannot afford.
One week ago, Oil and Gas Regulatory Authority (OGRA) proposed an increase in the price of high-speed diesel (HSD) per Rs119 per litre, and gasoline per Rs. 83.50 per liter.
Prime Minister Shehbaz Sharif chose not to approve this increase due to “political considerations”.
However, the petroleum division is now contemplating a reversal of this decision. An official source told the media that the government is considering increasing gasoline and diesel by Rs 20 per litre and then periodically increasing prices and eliminating the subsidy unless global prices are significantly reduced.
Miftah Ismail and Shahid Khaqan Abbasi have publicly declared that the subsidy will end soon because current international prices are too high.