Islamabad, 15 May 2023, GNP: Federal government has announced massive price-cuts in petrol and diesel prices, ensuing a declining price trend of petrol in the international market.
Finance Minister Ishaq Dar reportedly said in a press release, “the government has decided to reduce the existing prices of petroleum products in order to pass on the benefits of decreasing price trend of petroleum products in the international market and provide maximum relief to the masses.”
He reported that the tariffs of petrol have been reduced by Rupees 12 per liter, while the price of High-Speed-Diesel (HSD) has been lowered by Rupees 30 per liter.
Also Read: Pakistan needs significant financing for a successful IMF bailout
Thus, as per new notification the new prices of petrol are set at Rupees 270 per liter.
Finance Minister also said that the new prices will be functional from midnight on May 16. Moreover, these prices are to stay in effect for the next 15 days.
Earlier, upon the concerns of the government the Oil and Gas Regulatory Authority (OGRA) proposed reduction of fuel prices, upon which it had sent a summary to the government.
IMF bailout package: Government to scrap fuel subsidies
Earlier this week, during the negotiations with the IMF on the long-delayed $1.1 billion bailout package, the government informed IMF that it will scrap its plan of fuel subsidies.
During the discussion, IMF also assured that it would continue “engaging with the government” despite the soaring political situation in the country following the arrest of Imran Khan.
Regarding the plan of fuel subsidy, Prime Minister Shahbaz Sharif proposed to charge the well-off consumers more for fuel consumption. Whereas the money raised would be used to subsidize the poor who have been hit hard by the inflation.
However, the government decided not to implement the plan after meeting with the IMF.
