To resuscitate the IMF program, the government will have to boost the per liter price of petrol and diesel by about Rs. 23 and Rs. 55, respectively.
According to informed sources, the government is expected to totally eliminate the subsidy on POL goods before the start of the next fiscal year, following two consecutive increases of Rs. 30 per liter ach for petrol and diesel over the last month.
The subsidy on petrol is Rs. 23 and on diesel is Rs. 55, based on the current oil price on the international market.
The OGRA will complete the final computation next week when it sends the prime minister its suggestions for the new oil price.
Following two recent massive increases in oil prices — an Rs. 60 per liter hike in petrol and diesel prices — and the publication of the IMF-approved fiscal year 2022-23 budget.
It is widely assumed that all pre-conditions for the IMF program’s reactivation have been met, and the Fund will now give the green light at any time. This, however, is not the case.
According to reports, one key stumbling block would be the complete elimination of oil subsidies well before the start of the new fiscal year.
According to sources, the per liter subsidy for petrol was Rs. 9 and roughly Rs. 23 for diesel following the recent rise.
Because of the rise in oil costs on the worldwide market, the subsidy has now increased.
These are extremely challenging times for the Shehbaz-led coalition administration since it is widely assumed that the hardest decisions, such as the Rs. 60 per liter hike in gasoline and diesel prices have already been made.
But, according to the latest estimations, the government will have to increase the petrol price by Rs. 23/liter and the diesel price by Rs. 55/liter before the conclusion of the current fiscal year.
To read our blog on “Miftah promises that petrol prices will not rise anymore,” click here.