Petrol prices hiked by Rs 1.7 per litre for May

ISLAMABAD: The government on Monday increased the price of petrol by Rs 1.70 per litre with  effect from May 1.

The price of High-Speed Diesel (HSD) has also been increased by Rs 2.31 per litre, Light Diesel Oil (LDO) by Rs. 3.55 per litre, while the price of kerosene has been increased by Rs 3.41 per litre.

The new price of petrol will be Rs 87.70 per litre. The price of HSD has been increased to Rs 98.76 per litre and LDO at Rs. 68.85 per litre , while kerosene will be available at Rs 79.87 per litre.

The Oil and Gas Regulatory Authority (OGRA) had proposed an increase in the petrol prices by Rs. 3.22 per litre, HSD by Rs. 5.02 per litre, LDO by Rs. 6.95 per litre, and kerosene by Rs 6.97 per litre.

However despite a tight fiscal environment, the prime minister declined to pass on the full impact of the increase in prices to the consumers and decided that the government will absorb almost fifty percent of the impact of increase.

The prices will be effective from May 1, 2018 till midnight on May 31, 2018, and is probably the last increase by the incumbent government which completes its tenure by end May.

In a summary sent to the government, OGRA maintained that the adjustment in prices of petroleum products was required to pass on the impact of hike in international oil prices and the rupee price against the US dollar during April.

Besides petroleum prices, an increase has also been recommended in the levy on petroleum products.