Lahore: A critical decision regarding the abolition of subsidy on prices of petroleum products is expected today. OGRA has informed the government about the increasing subsidy on petroleum products. The abolition of subsidies is likely to lead to a sharp rise in the prices of petroleum products.

According to sources, the government is giving a subsidy of Rs 29.60 per liter on petrol, going up to Rs 45.14 from May 16. With the complete abolition of subsidy, petrol will become Rs 195 per liter. The current subsidy on diesel is Rs 73.4 paise per liter which will go up to Rs 85.85 paise from May 16. In case of abolition, the price of diesel will reach Rs 230 per liter.

The subsidy on light diesel oil is Rs 64.70 and from May 16 it will be Rs 68 per liter. With the abolition, the price of light diesel will be Rs 186.31. The subsidy on kerosene is Rs 43.16 per liter, increasing the price of kerosene to Rs 176 from Rs 50.44. The Prime Minister will make the final decision regarding the abolition of subsidies on petroleum products and new prices, after which the Ministry of Finance will announce the new prices.