ISLAMABAD: The federal government on Saturday night allowed a massive increase in the prices of petroleum products, raising the price of petrol by Rs9.42 and kerosene by Rs7.46 per litre.

The new prices of petrol and kerosene are Rs108.31 and Rs96.77, respectively.

The new price will come into effect from May 5 (today).

Through a late-night notification, the government increased the sales tax on motor spirit, excluding HOBC, by 10pc; high speed diesel by 4pc; kerosene oil by 9pc and light diesel oil by 8pc.

Previously, the rate of sales tax on motor spirit was 2pc, 13pc on high speed diesel, 8pc on kerosene and 9pc on light diesel oil.

The new price of petrol would be Rs108.31 per litre while the price of high speed diesel has been increased by Rs4.89 to reach Rs122.32 per litre.

The price of kerosene oil and light diesel has been increased by Rs7.46 and Rs6 per litre.

On Friday, the Economic Coordination Committee (ECC) of the cabinet had approved the recommendations of the Oil and Gas Regulatory Authority (Ogra) regarding increase in prices of petroleum products.

Ogra had suggested that the price of petrol be increased by Rs14.37 per litre, but the ECC meeting, chaired by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh, approved an increase of Rs9.34 per litre in its price.

Sources said that a notification about the increase in the prices of petroleum products was directly sent to the oil marketing companies by Ogra.

Published in Dawn, May 5th, 2019