However, the Finance Ministry reportedly opposed the suggestion because of its budget deficit impact. The government budgeted Rs120 billion revenue collection on account of petroleum levy in the current fiscal year. The petrol price was increased to Rs105.49 per litre, up from Rs102.45 after an increase of Rs3.04 per litre and the price of kerosene oil was fixed at Rs101.95 after an increase of 72 paisa per litre. However, the price of high-speed diesel (HSD) was decreased to Rs110.46 from Rs113.16 after a cut of Rs2.7 per litre.
The government also increased the price of compressed natural gas (CNG) by Rs2.78 per kg for Region-I and Rs2.54per kg for Eegion-II to maintain 60% price parity with the petrol in the wake of changes in prices of petroleum products. The CNG would now be sold at Rs96.57 per kg in Region-I and at Rs88.22 per kg in region-II.
After successive increase in petroleum prices, some relief was provided to consumers when the price of petrol was decreased by Rs6 per litre last week. The government's decision to adjust petroleum prices on weekly basis was widely criticised because such a decision would increase problems for the common man, besides encouraging hoarding by petrol station owners to make windfall profit.