The finance minister said high-speed diesel and petrol will sell at Rs84 and Rs74 respectively, while kerosene oil and light diesel will sell at Rs44 per litre throughout the month of May.
He said that in order to maintain the prices of both Kerosene Oil and LDO at current levels, the government will be forgoing all applicable taxes and duties on these petroleum products.
In the case of Kerosene Oil, he added, a government subsidy will be provided to maintain the price at the current level.
The Minister further announced that the Prime Minister has directed to maintain the prices of Petrol and High Speed Diesel at existing levels till May 31, 2017.
Dar said that the government has absorbed significant impact of price increases since April 2016 and has suffered considerable loss of revenue.
During this period only partial increases have been passed on since December 2016, he said, adding the government has to bear about Rs110 billion shortfall in revenue due to provision of subsidy on petroleum product during the current fiscal year.
He said the government wanted to provide maximum relief to the people by not passing on hike in the petroleum products.
He said that Ministry of Petroleum and Natural Resources and OGRA had recommended an increase of Rs15.19 per litre in the price of Kerosene Oil, increase of Rs10.65 per litre in the price of Light Diesel Oil (LDO), decrease of Rs1.20 per litre in the price of MS 92 RON Petrol, and decrease of Rs1.10 per litre in the price of High Speed Diesel (HSD), with effect from 1st May 2017.
Last month, the government increased the prices of petrol and high-speed diesel (HSD) by Rs1 per litre. The government absorbed the impact of oil prices by making adjustments in taxes following a dip in oil prices in international markets.
The oil and gas regulatory authority (OGRA) had recommended reducing the prices of petrol and high speeding diesel by Rs1.00 per litre, respectively. But the government instead of decreasing the prices, kept the prices unchanged.