Govt allows 'sky high' raise in petrol prices.

ISLAMABAD -- The government has jacked up the prices of petrol and high speed diesel (HSD) by Rs 35/litre each owing to increase in the oil prices in international market and depreciation of Pakistani rupee against the US dollar.

In a short televised address on Sunday morning, the Federal Minister for Finance Ishaq Dar has announced increase in the prices of all the petroleum products, including petrol, HSD, kerosene and light diesel oil (LDO). It has been decided to increase the price of petrol and diesel by Rs35 per litre, said the minister. The prices of kerosene oil and light diesel oil have been enhanced by Rs18/litre, he announced. After the increase, the price of high speed diesel has gone up to Rs 262.80/litre from the previous Rs 227.80/litre. The price of motor spirit/petrol hit record high at Rs 249.80/ litre from the early Rs 214.80/ litre. Kerosene oil gone to Rs 189.83/litre from the earlier Rs 171.83/litre. The price of light diesel oil has increased to Rs 187/litre from Rs 169/litre.

Ishaq Dar recalled that during the last four months, from October to Jan 29, the price of petrol was not increased. The prices of diesel and kerosene oil were decreased, he added.

Pakistani rupee depreciated by almost 12pc against the US dollar last week, while the oil prices increased by 11pc in the international market. Despite international prices and rupee devaluation, on directions of Prime Minister Shehbaz Sharif, it has been decided to make minimum increase in the prices of the petroleum products, the finance minister said. Dar said that the increase is being done immediately on the recommendation of the oil and gas regulatory authority (OGRA).According to OGRA, there were reports of artificial shortages and hoarding of fuel in anticipation of price hike, hence this price rise is being done immediately to combat the artificial shortage, he added. The new prices would come into effect within next two to three minutes, by 11am, Dar maintained.

The minister hoped that the announcement of new prices would dispel rumours about petrol supplies running dry. The government resorted to adjustments of fuel prices three days ahead of the scheduled revision, which was due on January 31, owing to oil shortage in the country.

Due to speculation of up to Rs80/litre hike in the prices of petrol and HSD, petrol pumps across country have stopped selling the fuel on Saturday. There were rumours of hefty hike in oil prices for the next fortnightly, the...