Petrol, diesel prices go up by Rs3

ISLAMABAD — The government has increased the prices of all petroleum products other than kerosene oil by Rs3 per litre effective from May 1.
This is the second hike in the price of petroleum products since the present government took over.
The government said the previous government delayed adjustment in prices for several months due to elections despite abnormal rise in oil prices in the world.
The decision was made following a recommendation by the Petroleum Ministry to increase prices of petrol, diesel and high octane blending component (HOBC) by at least Rs3 a litre. The hike will help the government reduce by about Rs10 billion the subsidy it provides on petroleum products.
Petrol will now be sold at Rs68.81 per litre, HOBC at Rs80.77 per litre and light diesel at Rs44.59 per litre.
The government had increased the prices of petroleum products by Rs3 per litre following a hike in oil prices in the international market on March 18, and by another Rs3 a litre on April 18. The new government plans to completely eliminate subsidy on petroleum products.
The Petroleum Ministry had also asked for an increase in the prices of kerosene oil, saying profiteers might mix the cheaper kerosene with diesel oil, but the government rejected the proposal.
Sources in oil marketing companies say that the demand for kerosene oil had increased by 400 per cent because the government’s decision not to increase its price.
Oil prices in the international market tumbled lower yesterday as traders reacted to buoyant US crude inventories and awaited an interest rate decision from the Federal Reserve, analysts said.
Prices had already erased more than three dollars on Tuesday.