The government on Monday increased the prices of petroleum products in line with global oil prices and rupee-dollar parity, effective from Tuesday, September 1. Prime Minister Yousuf Raza Gilani approved the summary. The government has increased price of petrol (motor spirit) by Rs 4.80 per litre; HOBC by Rs 3.38 per litre; kerosene oil Rs 2.69 per litre, light diesel oil (LDO) Rs 3.69 per liter; JP-1; 3.74 per litre; and JP-4; 4.10 per litre.

After the increase, the new price of petrol will be Rs 65.44 per litre, HOBC Rs 80.39 per litre, kerosene oil Rs 60.6 per litre, LDO Rs 56.96 per litre, JP-1 Rs 48.02 per litre; and JP-4 Rs 46.06 per litre. Petroleum Ministry had recommended raise in oil prices based on average crude oil price worth $71.23 per barrel in international market during the month of August.

Finance Ministry also backed the proposals of Petroleum Ministry in a bid to enhance revenue collection during the current financial year. After the recent increase in prices of petroleum products, government has projected collection of Rs 8 billion through Petroleum Levy (PL) in September. Government, according to provisional estimates, collected Rs 8 billion PL during August.

Copyright Business Recorder, 2009