Gasoline prices are poised to rise after Finance Minister Miftah Ismail agreed to the IMF's request to eliminate fuel subsidies. Ismail told the media that IMF officials have discussed eliminating the gasoline subsidy, and he agrees with them. "We can't afford to provide the subsidies," he stated.
The finance minister had previously stated that the petrol subsidy for May and June would cost Rs. 96 billion, which the government could not afford.
According to sources, the price of petrol, minus customs and taxes, might rise by Rs. 20 per liter on March 1, 2022. The Oil and Gas Regulatory Authority (OGRA) proposed an increase in fuel prices of Rs. 83 per liter last week. Diesel prices may also be raised of Rs. 119 per liter, Rs. 77.56 per liter for kerosene oil, and Rs. 77.31/liter for light diesel oil (LDO), with a Rs. 30 PL and a 17 percent GST.
The idea was rejected by the new administration, which made a political decision rather than an economic one. This was the government's first test, and it appeared that it passed with flying colors. Retaining existing price, however, will be extremely expensive, as previously said. As a result, the general public could expect another increase in gasoline prices before the end of this week.
In the previous several years, the price of petroleum commodities has risen in both Pakistan and the worldwide market. It used to be due of COVID-19, and nowadays it's because of Russia's and Ukraine's conflict. We really hope that this issue will be resolved quickly, allowing prices to return to a more stable state.
Petrol currently costs Rs. 149.86, while High-Speed Diesel (HSD) costs Rs. 144.15, Kerosene Oil (SKO) costs Rs. 125.56, and Light Diesel Oil (LDO) costs Rs. 118.31.
How do you feel about the anticipated price hike? Do you believe the government's decision to eliminate subsidies is the correct one?