ISLAMABAD: Rejecting recommendations of two parliamentary committees and the Oil and Gas Regulatory Authority (Ogra) for reducing prices of petroleum products, the government increased on Friday by up to eight per cent the rates of all transport fuels and CNG.

The new prices touching peak in the country’s history will be effective for seven days from Friday-Saturday midnight.

The highest increase of 8.03 per cent is in the prices of petrol and CNG to maintain the price difference between the two competing fuels used by lower income consumers like owners of small cars, motorbikes and rickshaws.

For the first time prices of all major products — petrol, diesel, kerosene and HOBC (high octane blending component) — crossed the Rs100 per litre mark, except for light diesel which is Rs98.84.

Ogra had recommended that the prices be maintained by absorbing a revenue impact of Rs3 billion through a reduction in petroleum levy to protect consumers from an overall price spiral.

The government also ignored a consensus recommendation of two standing committees (petroleum and cabinet) of the National Assembly to bring down oil prices to the July 31 level. The committees had asked the government on Aug 28 to reduce fuel prices and revise them on a monthly, instead of weekly basis.

According to a notification issued on Friday night, the price of petrol has gone up by Rs7.77 per litre (8.28 per cent) to Rs104.55.

The CNG price for Khyber Pakhtunkhwa, Potohar and Balochistan (Zone-I) was increased by Rs7.11 per kg to Rs95.72 and that for Punjab and Sindh (Zone-II) by Rs6.50 per kg to Rs87.44.

The price of high speed diesel (HSD) mostly used by the public transport was raised by 5.54 per litre (5.94 per cent) to Rs112.13 and that of HOBC by Rs8.18 (6.54 per cent) to Rs133.19.

The price of kerosene has gone up by Rs5.86 per litre (6.08 per cent) to Rs102.21 and that of light diesel oil by Rs5.54 (5.94 per cent) to Rs98.84.

Prices of two airline fuels were also jacked up — JP-4 by Rs5.96 per litre (7.7 per cent) to Rs83.51 and JP-8 by Rs6.02 (7 per cent) to Rs91.55. The JP-1 is the only product whose price has been reduced by Rs3.21 per litre (3.7 per cent) to Rs82.63.

The government is currently charging the petroleum levy of Rs10 per litre on petrol, Rs14 on HOBC, Rs6 on kerosene and Rs8 on HSD. Besides, it collects 16 per cent general sales tax on all products which fluctuates between Rs17 and Rs22 according to changing prices.