On Wednesday, the Oil and Gas Regulatory Authority (OGRA) communicated to the petroleum division that there will be an additional increase in the price of petrol and diesel beginning on June 16.
In light of the negotiations that have taken place with the International Monetary Fund (IMF), the Oil Regulatory Authority is said to have compiled a summary, seeking a rise in the price of petroleum beginning on June 16 according to the sources.
According to the sources, the authority has also proposed doing away with price subsidies for petrol.
The price of petrol has increased by Rs60 per liter over the course of the past 15 days; however, the government is continuing to provide subsidized petrol at Rs9.3 per liter and diesel at Rs23.05 per liter.
According to the sources, however, the decision on the prices of various petroleum products would ultimately be made by the prime minister.
After the International Monetary Fund (IMF) refused to release a tranche of one billion United States dollars and demanded that subsidies on fuel and electricity be reversed, the federal government recently increased the prices of petroleum products by sixty rupees per liter within a span of one week.
On the other side, the dollar strengthened by 1.21 rupees during the early morning trade on Wednesday, which resulted in the rupee maintaining its downward trend against the US dollar on the interbank market.
As a result of the International Monetary Fund’s (IMF) decision to postpone the resumption of its $6 billion loan program, analysts believe that the regional currency is on a downward trend as compared to the United States dollar.