The government announced its decision to keep the prices of HOBC and petrol unchanged for the month of January. However, a reduction has been announced in the rates of diesel and other petroleum products.
The prices have received the approval of Prime Minister Nawaz Sharif, while the decision was announced by Finance Minister Ishaq Dar.
According to Mr. Dar, the prices of petrol and HOBC have remained static in order to rationalize rates as well to reduce the burden on the general public. He added that this was also the reason why the rates of HSD, LDO and kerosene have been reduced.
This is in contradiction to the price recommendations of Oil and Gas Regulatory Authority (Ogra) which had recommended that the price of petrol by increased by Rs2.17 per litre.
According to a source at the finance ministry, the government would be offering a subsidy of almost Rs. 1.20 billion in order to maintain the petrol price.