ISLAMABAD: The government of Pakistan is expected to lower the prices of petroleum products starting May 1, in an effort to ease the burden of inflation on the people. The petrol price is likely to slash by Rs4.5 per litre, while the price of diesel is also to be decreased by Rs6 per litre.
Diesel is primarily used in the agriculture and transportation sectors, and the reduction of its price can aid in lowering the inflationary impact, bringing relief to farmers as the crop-harvesting season has started.
The low-income group, who mostly rely on small cars and motorbikes, are already struggling to cope with high prices. The government had increased the petrol price by Rs10 due to an increase in international prices. After the last increase, the petrol price reached Rs282 per litre.
Last month, Prime Minister Shehbaz Sharif had announced a subsidy for the poor on every litre of petrol, but its implementation was halted due to concerns raised by the International Monetary Fund (IMF). The lender had objected to the proposal and requested that Islamabad provide details of the plan’s implementation.
Despite the objections, Minister of State for Petroleum Musadik Malik denied that the subsidy would violate any conditions and stated that the ministry had already answered all queries. However, the Ministry of Finance has yet to respond to the lender’s concerns regarding the cross-fuel subsidy.