The prices of petroleum products shall not change, said Minister for Finance Ishaq Dar while speaking to the media on Sunday.
"The government will give subsidy to keep the prices unchanged," he said. "We will also not charge sales tax."
These products are used on a daily basis by people belonging to low-income households, which is why the government will make sure there is not a substantial increase in their prices, Dar said.
The Oil & Gas Regulatory Authority (OGRA) had submitted a petition to reduce the prices of petrol and diesel by Re1 per litre. On the other hand, public expectation was a reduction of Rs2 per litre.
Although the reduction in prices hinders the Federal Bureau of Revenue from reaching their revenue targets, Dar maintained, the government will make sure the prices that were set on April 1 will remain the same throughout May.