The federal cabinet rejected a proposal to raise petroleum product prices on Friday, deferring the issue to the next administration.
According to reliable sources, the government is working to stabilize petroleum prices in the country following Prime Minister Imran Khan’s decision to freeze prices till June.
The Petroleum Division advocated an increase in the price of petrol products of up to Rs. 35 per litre in a hastily produced summary for the federal cabinet meeting.
According to sources, the federal government’s ability to maintain petroleum product pricing has become a big concern.
The summary urged that the federal cabinet reassess the decision to maintain petrol prices, requesting prompt involvement.
The summary cautioned that unless petroleum product prices were raised soon, the country would face a severe shortage of petroleum supplies.
According to reports, the Petroleum Division has warned that if current prices are maintained, a Rs. 136 billion subsidy will be due by June 30.
Prime Minister Imran Khan has rejected the proposal to raise the price of petrol by Rs. 27 and the price of high-speed diesel (HSD) by Rs. 35 per litre, deferring the decision to the next government.
On February 28, the prime minister announced that the government will not hike gasoline and diesel prices until June 30.
The government presently provides a subsidy of Rs. 43.10 per litre on high-speed diesel and Rs. 24.78 per litre on petrol.
According to Petroleum Division sources, the oil marketing corporations are in serious financial trouble as a result of the Price Differential Claims (PDC).
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