In order to keep the petroleum prices unchanged, the government has increased its subsidy on the POL products by Rs21/L, reported 24NewsHD TV channel on Sunday.

According to details, the Rs73.04/L subsidy would be given on high speed diesel while the government has increased the subsidy on petrol by Rs8.30/L. So the total subsidy given on petrol would be Rs29.60/L.

The government has also abolished levy and sales tax on both petrol and diesel. 

As the festival of Eid is around the corner, the federal government on Saturday gave the good news to the masses over POL products.

The Prime Minister Shehbaz Sharif-led government decided to maintain the current prices of POL products. A notification in this regard was issued last night.

Though the government has announced to keep the POL products prices unchanged for the next 15 days, but the national exchequer has to bear a loss of Rs40 billion in order to provide the subsidized fuel to the customers for the next fortnight. 

So the government would have to pay the price differential claims amounting to Rs40 billion to the oil companies.  

During his visit to the US last month, Finance Minister Ismail Miftah agreed with the International Monetary Fund's (IMF) recommendations to reduce fuel subsidies and end a business tax amnesty scheme, pledging to pursue structural reforms to boost a crisis-wracked economy. 

"They've talked about removing the subsidy on fuel. I agree with them," Miftah said at the Atlantic Council.

"We can't afford to do the subsidies that we're doing. So, we're going to have to curtail this," he said.

He said that former prime minister Imran Khan, seeking to avoid ouster, set a "trap" for his successors through heavy subsidies on fuel and electricity, as well as a tax amnesty scheme for businesses -- measures that derailed a disbursement from the IMF loan.  

Miftah, however, said that some targeted subsidies should remain for Pakistan's poorest amid sky-high global prices.

Reporter Waqas Azeem