According to Geo News, the government is considering gradually removing petroleum product subsidies ahead of talks with the International Monetary Fund (IMF) about renewing the $6 billion loan package.
The government has received a summary from the Oil and Gas Regulatory Authority (OGRA) for the POL pricing from May 16, according to Geo News sources. The government is expected to gradually phase out subsidies on all petroleum products, according to people familiar with the situation, with a decision on fuel prices for the next two weeks due on Sunday.
The price of petrol will soar to Rs190 per litre if the government cancels all incentives.
Fuel is also subsidised by the government at Rs73.04 per litre and kerosene at Rs43.16 per litre. Diesel and kerosene prices will jump to Rs230 and Rs176 per litre, respectively, if the subsidy is eliminated.
Prime Minister Shehbaz Sharif had previously dismissed an OGRA request to boost the price of petroleum products.
