The government has increased the prices of petroleum products by Rs. 30 per liter, however, it is still not collecting petroleum development levy and general sales tax (GST) from the consumers.
According to the Ministry of Finance sources, despite the increase in the prices of petroleum products, the government has still not ended the fuel subsidies completely.
The government was providing a subsidy of Rs. 86.71 per liter on various petroleum products. Sources say that the subsidy on High-Speed Diesel (HSD) was reduced from Rs. 86.71 to Rs. 56.71 per liter after the increase.
Similarly, the subsidy on petrol has come down from Rs. 47.20 per liter to Rs. 17.2 per liter. The subsidy on Light Diesel Oil (LDO) has come down from Rs 67.84 per liter to Rs. 37.84 per liter. Similarly, the subsidy on kerosene oil has been reduced from Rs. 51.83 to Rs. 21.83 per liter, sources added.
Pakistan and the International Monetary Fund (IMF) had failed to reach an agreement on an economic bailout mainly after the recent talks because of the government’s indecision on fuel and electricity subsidies. The removal of fuel subsidies will likely pave the wave for an economic bailout from the IMF.
