After two back to back hikes, the government has decided to keep the fuel prices unchanged. As per media reports, Oil and Gas Regulatory Authority (OGRA) proposed to increase the petrol and diesel prices but PM Shahbaz Sharif has rejected the proposal.
Current Fuel Prices
After the recent hike in petrol prices, petrol is currently at Rs. 209.86.
New Diesel rate is Rs. 204.15.
New rate of Kerosene Oil is Rs. 181.94.
Light Diesel Oil is at Rs. 178.
Current Fuel Subsidies
The government is offering Rs. 9.32 per litre subsidy on petrol, Rs. 23.05 per litre subsidy on High Speed Diesel (HSD), and Rs. 8.8 per liter subsidy on Light Speed Diesel (LSD). Meanwhile, General Sales Tax (GST) and Petroleum Levy (PL) are zero on all petroleum products.
However, the government has to reach an agreement with the International Monetary Fund (IMF) and qualify for the next tranche of $1 billion under the Extended Financing Facility (EFF). Ending these fuel subsidies and increasing the taxes on petroleum products are some of the IMF’s conditions the government has to comply with. That means the fuel prices are bound to go up soon or later. Some reports even say that the petrol price will cross Rs. 300 in the coming months.
Last time, the government announced to keep the fuel prices unchanged on the 1st of June. Later, the government took its decision back and hiked the fuel prices by Rs. 30 on the 2nd of June. So, we can’t help but wonder if the same thing will happen again.
What do you think about the government’s announcement to keep the fuel prices unchanged? Do you think the authorities will surprise us with a price hike later this week just like they did last time? Share your thoughts in the comment section and stay tuned to see what happens next.
