KARACHI, Feb 1: The Oil Companies Advisory Committee (OCAC) has raised petrol price by Rs2 per litre - from Rs40.39 to Rs42.39 per litre. The OCAC has also enhanced the rates of kerosene oil, HOBC and light diesel oil (LDO) by Rs1 to Rs2.73 per litre. Similarly, the three oil marketing companies - Pakistan State Oil, Shell Pakistan Limted and Caltex Oil Pakistan - have also enhanced the rate of high speed diesel (HSD) by 95 paisa, from Rs26.21 to Rs27.16 per litre.

The OCAC, a cartel of oil marketing companies, in a statement said that HOBC will be available at Rs47.32, up from Rs44.59. Kerosene oil has become costlier by Re1 and will be available at Rs27.04. LDO price has been enhanced by Rs1.41 to Rs24.33. Up to now, it was being sold at Rs22.92 per litre. The new rates take effect from Feb 2 (Wednesday).

The release said the OCAC, in its fortnightly meeting, reviewed prices of petroleum products and "hereby it notifies the revised maximum ex-depot sales prices at 29 designated locations". It did not say what international oil price movement and rupee-dollar parity had been considered while fixing the prices of oil products.

Besides, the officials of the oil marketing companies (OMCs) were also tight lipped in giving any cogent reason of enhancing the diesel rates. The OMCs officials were also shy of giving the rationale behind increasing the diesel price.

Market analysts said that the increase in oil prices would fuel inflationary trends in prices which were pretty much safeguarded from global price hike last year by keeping the prices frozen.

The government has now come out to recover the Rs40 billion it had lost last year by not charging the petroleum development levy (PDL). Shell Pakistan Limited has raised furnace oil prices by Rs1,369.65 per ton.

The new price has been fixed at Rs15,389.30 per ton, up from Rs14,019.65 per ton. Almost a similar increase has been made by Pakistan State Oil (PSO), dealers said.