ISLAMABAD, May 31: The government reduced prices of all petroleum products on Thursday, to be effective for the next fortnight.

At the same time, the petroleum levy was raised to its optimum level which will generate an additional Rs15 billion over the next fortnight.

Although a decision to increase or reduce oil prices is taken by the Ministry of Petroleum and Natural Resources, a notification to that effect is issued by the Oil and Gas Regulatory Authority (Ogra).

The price of petrol has been reduced by Rs3.39 to Rs99.97 per litre. However, the petroleum levy has been raised to Rs10 from Rs8.86 per litre. The price of diesel has been reduced by Rs1.23 per litre to Rs105.77 from Rs107. The levy on diesel has been increased to Rs8 per litre from Rs4.20.

The price of HOBC (high octane blending component) has been reduced by Rs10.74 to Rs125.07 per litre and the levy increased to Rs14 from Rs11.84 per litre. The price of kerosene has been reduced by Rs5.90 to Rs94.05 per litre and the levy increased by 85 paisa to Rs6.

The price of LDO (light diesel oil) has been cut down by Rs5.84 to Rs91.59 per litre. LDO is used in certain pumps and machines, mainly in rural areas.

The prices of aviation fuels have also been reduced -- JP-1 by Rs3.41 to Rs87.13 per litre, JP-4 by Rs7.28 to Rs76.33 and of JP-8 by Rs5.22 to Rs83.36.