The government on Thursday has increased the prices of all oil products by Rs 3 per litre except kerosene oil. Kerosene oil price has been kept at the previous level to basically protect the poor from additional financial burden, who use it as fuel.

Prime Minister, Syed Yusuf Raza Gilani, excluded the kerosene oil from increase in price on the personal request of Finance Minister Ishaq Dar. The Oil and Gas Regulatory Authority (Ogra) has issued a notification of the new prices of petroleum products, to be effective from April 16.

As per rules, oil price review for the current fortnight was due from April 16. The government's step to rationalise oil prices will help to reduce subsidies burden on the economy besides reducing budgetary deficit. The government has already paid Rs 84 billion subsidy for adjusting high international prices of oil. By revising the prices, the government is trying to lessen subsidy in phases.

Copyright Business Recorder, 2008