Though the government has hiked the POL prices two times in a week, but still it has failed to placate the International Monetary Fund which insists on complete withdrawal of subsidies on petroleum products, reported 24NewsHD TV channel.

Sources divulged on Friday that the government could not implement all conditions put forward by the Fund and which were agreed upon by the previous government as still the new government is giving subsidies on the POL products. So there is a pretty good chance that further hike in the POL prices will be coming soon, sources added.

They said at present, the government is giving a subsidy of Rs23.03 on high speed diesel (HSD); on petrol Rs9.32; and on light diesel Rs8.08.

However, government is not providing any subsidy on the kerosene oil.

Sources said that the government has not put any sales tax on the POL products and there is zero levy on these products.

The Fund is nudging government to withdraw all kinds of subsidies on petroleum products altogether for the revival of its loan programme.

Sources further revealed that the economic mangers are trying to reduce the subsidies in the next fiscal year budget.

They are suggesting the government to put the POL levy to the tune of Rs30. They are also recommending to ensure sale tax collection on the POL products.

They are also suggesting to increase the levy in phases.

Sources said that this year, the government so far has given a subsidy of Rs500 billion on the POL products. Since March, Rs250 billion have been given in the subsidy, sources revealed adding that the government has not received even a dime under the heads of sales tax and levy.

Reporter Waqas Azeem