ISLAMABAD: Prime Minister Nawaz Sharif has rejected the Oil and Gas Regulatory Authority's (OGRA) summary for upward revision of petroleum prices for the month of July, 2014.

A spokesman of the Prime Minister House said in a statement issued here on Monday that the government has decided to give half a billion rupees subsidy to ensure there is no change in the petroleum prices and that relief is provided to masses.

It may be noted that last time subsidy on petroleum prices was Rs1.78 billion.

After rejection by the prime minister, the petroleum prices remain unchanged in the country.

Last week, the Ogra had forwarded the summary about raising petroleum prices to Finance Minister Ishaq Dar and Petroleum Minister Shahid Khaqan Abbasi.

According to the working paper submitted to the government, Ogra had worked out an increase of 84 paisas per litre in the price of petrol, Rs3.63 per litre in the price of High Octane Blending Component (HOBC), 30 paisa per litre in kerosene, 27 paisa per litre in high speed diesel and 22 paisa per litre in light diesel.

Sources, however, had said that there were strong indications from the government that it wanted to maintain prices at the current level by absorbing the required increase in production prices through a reduction in the rate of petroleum levy.

The government had kept petroleum prices unchanged last month as well. Apart from the Rs6 to Rs14 per litre petroleum levy, the government also charges 16 per cent general sales tax on the prices of all petroleum products.