Govt to reduce petrol prices from May 1
Business
Petrol may decrease by Rs4.5, diesel Rs6 per litre
ISLAMABAD (Web Desk) – The government is expected to reduce the prices of petroleum products from May 1 in an effort to provide relief to the inflation-hit citizens.
According to oil marketing company sources, petrol price may decrease by Rs4.5 per litre, while diesel is speculated to reduce by Rs6 per litre.
Diesel is mainly utilised in transportation and agriculture and a price reduction can alleviate inflationary impacts and assist farmers as the crop-harvesting season has commenced.
Low-income segment is reeling under economic crunch. Last month, Prime Minister Shehbaz Sharif proposed a relief package for the segment through cut in petrol prices, however, the International Monetary Fund’s concerns prevented the initial implementation. Despite these objections, Minister of State Musadik Malik denied any violation of conditions.
On the other hand, the International Monetary Fund (IMF) is awaiting clarity on the petrol subsidy scheme as Pakistani authorities have not yet withdrawn the proposed cross-fuel subsidy scheme in writing to the Fund, reports a media outlet.
The lender had raised objections to the proposal, asking Islamabad to share details about the implementation of the plan that was announced without ‘consultation’. Minister of State for Petroleum Musadik Malik had rejected the perception that the subsidy would violate the conditions, adding the ministry had responded to all the queries in detail.
The media outlet, quoting an unnamed finance ministry official, reported that the IMF didn't ask for the withdrawal of the cross-fuel subsidy in writing.
