The government on Wednesday announced a reduction in the prices of petrol by Rs1.20 per litre and by Rs 1.60 per litre for High Speed Diesel while keeping the prices of kerosene and light diesel oil unchanged to provide relief to consumers.

Announcing the new petroleum prices, which will take effect starting June 1, 2017 and stay until midnight on June 30, 2017, Finance Minister Ishaq Dar said the new prices for diesel will be Rs81.40 per litre while petrol will be sold for Rs72.80 per litre.

The minister said it has been decided to maintain the prices of kerosene and light diesel oil at the current level till June 30, 2017.

This decision has been taken keeping in view the fact that kerosene caters to the energy needs of the poor, the minister added.

Dar said the Ministry of Petroleum and Natural Resources and the Oil and Gas Regulatory Authority had recommended an increase of Rs13.54 per litre in the price of Kerosene Oil, an increase of Rs9.28 per litre in the price of light diesel oil while recommending a decrease of Rs2.43 per litre in the price of petrol and Rs3.31 per litre in the price of High Speed Diesel with effect from June 1, 2017.

The government has absorbed a significant impact of price increases since April 2016 and has suffered a considerable loss of revenue, the minister noted.

Only partial increases have been passed on to consumers since December 2016, Dar maintained.