The federal cabinet Friday rejected a summary to increase prices of petroleum products and left the matter to the next government.
Reliable sources informed ProPakistani that the government is in a fix to stabilize the petroleum prices in the country after Prime Minister Imran Khan’s decision to keep the prices frozen till June.
In a hurriedly prepared summary for the federal cabinet’s meeting, the Petroleum Division recommended an increase of up to Rs. 35 per liter in the prices of petroleum products. Sources informed that maintaining the prices of petroleum products has become a major challenge for the federal government. Asking for immediate intervention, the summary recommended the federal cabinet to review the decision of maintaining petroleum prices.
The summary warned that if the prices of petroleum products were not increased immediately, there would be a severe shortage of petroleum products in the country. According to sources, the Petroleum Division has warned that if prices are maintained, a subsidy of Rs. 136 billion will have to be paid by June 30.
Prime Minister Imran Khan rejected the summary to increase the price of petrol by Rs. 27 and the price of high-speed diesel (HSD) by Rs. 35 per liter and left the matter for the next government.
The prime minister had announced on February 28 that the government would not raise petrol and diesel prices till June 30. The government is currently giving Rs. 43.10 per liter subsidy on high-speed diesel, and Rs. 24.78 per liter subsidy on the price of petrol.
According to sources in the Petroleum Division, the oil marketing companies are facing severe financial difficulties because of the Price Differential Claims (PDC).