Pakistan’s oil subsidy costing US$58.6 million a month

Pakistan’s petroleum product subsidy will cost the government Rs 5 billion (US$58.6 million) a month, according to the Oil and Gas Regulatory Authority (OGRA). According to an official with the , “The government was making all out efforts to extend relief to the masses but the steep rise in petroleum products prices at the international oil market forced the authority to raise the same here.” Islamabad had kept the price of oil and gas at November prices, but the high cost of oil necessitated a 9.9% increase in fuel costs. It is estimated that even with the price hike, the government continues to lose Rs 5 billion (US$58.6 million) a month. The OGRA official went on to say that if oil prices continue to rise, the government stands to lose upwards of Rs 30 billion (US$351.8 million) in revenue. (March 2, 2011)