Govt. to end petrol subsidy, expect huge price hike soon

The panic buying of diesel has started in the rural as well as some urban areas of Pakistan causing artificial shortage. The sudden diesel hoarding was triggered due to the fact that the prices of petrol, diesel and other POL products are most likely to rise from next month, if not earlier, after the news that the government is eliminating the subsidy on POL products after negotiating a deal with the International Monetary Fund.

The previous government kept the prices of diesel and petrol frozen for the last month or so and even the new government kept them at the same point for at least one revision cycle. But now as directed by IMF, there is a massive chance that prices of both petrol and diesel along with other petroleum products including the electricity will hit the new high.

The rumoured new prices of both petrol and diesel are Rs220 and Rs240 respectively. Please keep in mind that these are just initial numbers suggested by the industry insiders and there is a chance that these won’t be the final prices.

If the new prices come into effect, this will cause the chain reaction of other things getting expensive as well since the transportation charges play a deciding role in determining the final prices. This can badly affect the remote and hard to reach rural areas of the country like the northern regions as well as deep rural Sindh and Balochistan.

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