The federal government on Tuesday increased the price of petrol by Rs17.5 per litre, taking the new price to Rs290.45. The price of diesel was also increased by Rs20 per litre to Rs293.40.
The finance division formally notified the new prices, which will be effective till the next fortnight.
The Oil and Gas Regulatory Authority (OGRA) had sent a summary to the ministry of petroleum recommending an increase of Rs12 in the prices of petrol for the next fortnight. However, the government approved an increase of Rs17.5 per litre.
Apart from recommending an increase of Rs12 in per litre price of petrol, OGRA had also recommended an increase of Rs20 in the price of high-speed diesel, Rs10 for kerosene and Rs8 for light diesel.
The government approved the increase in the prices of diesel, kerosene and light diesel in line with the OGRA recommendations.
Authorities said that the new prices were based on the OGRA summary as well as the prices of oil in the international market. The international market has seen an increase in the price of oil in the last week. However, a decrease was seen on Monday.
With no caretaker cabinet in place, the prices were discussed between finance ministry officials and the newly sworn in caretaker prime minister.
The last change, announced on August 1, was an increase of Rs20 in the price of oil.
The increase in petrol prices is likely to have a significant impact on the cost of living in Pakistan. It will also put pressure on the government’s finances, as it will have to spend more on fuel subsidies.
The government is expected to announce a new set of fuel prices on August 15. It remains to be seen whether the government will continue to increase the prices of petrol and diesel in the coming weeks.
