The general public is about to face a significant increase in fuel prices. Following the political shift, the Ministry of Finance and Petroleum is considering eliminating gasoline subsidies.
Miftah Ismail, the Finance Minister, recently stated that the petrol subsidy permitted for May and June would cost Rs. 96 billion, which the government cannot afford.
The Oil and Gas Regulatory Authority (OGRA) suggested a price rise of Rs. 119 per liter for high-speed diesel (HSD) and Rs. 83.50 per liter for petrol a week ago. Because of “political considerations,” Prime Minister Shehbaz Sharif opted not to authorize the hike.
Miftah Ismail and Shahid Khaqan Abbasi have both stated that the subsidies will be phased out shortly as foreign prices rise.
Miftah blamed the former administration for the impending price hikes on fuel items. According to him, “By not taking tax on petrol and diesel, Imran Khan has put the Shehbaz Sharif-led government in trouble. Making petrol cheap is not a favor, it is the nation’s money through which they give subsidy.”
He emphasized that gasoline subsidies had taken a large amount of money from the national budget. “We will restore the program. If the government has to tighten its belt, it will do so,” he added.
It should be recalled that the previous government planned to import fuel from Russia at a 30 percent discount, allowing the ruling party to keep petrol and diesel prices the same.
Fuel costs will skyrocket as a result of the planned price hikes. This realization has sent the general public and a number of businesses into a panic.
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