ISLAMABAD: The government on Thursday decided to keep the prices of all petroleum products, except light diesel oil, unchanged for July to facilitate general public ahead of Eidul Fitr.

“In line with Prime Minister Nawaz Sharif’s policy of providing maximum relief to the people, it has been decided that the prices of petroleum products will not be increased on July, 2016”, said Finance Minister Ishaq Dar.

The price of light diesel oil (LDO) was, however, increased by Rs5.38 per litre to Rs43.35 from existing rate of Rs37.97 per litre, up 14pc. The increase was necessitated to avoid creation of price differential claim payable to refineries.

He said the government will absorb the full impact of maintaining the prices at the current level. An official said the overall impact of the stable price would be Rs3 billion.

As such, the price of petrol would remain unchanged at Rs64.27 per litre, HSD at Rs72.52 per litre, HOBC at Rs72.68 per litre and kerosene Rs43.25per litre.

Based on existing tax rates, the Oil and Gas Regulatory Authority (Ogra) had worked out an increase of 3pc in the price of petrol, 5.2pc in high speed diesel (HSD), 4.85pc in High Octane Blending Component (HOBC), 14.16pc in Light Diesel Oil (LDO) and 19.93pc jump in the price of kerosene.

The government, however, reduced the tax rates to maintain price of major products unchanged.

Published in Dawn, July 1st, 2016