KARACHI, March 15: Petrol and diesel became costlier by Rs1.37 and 87 paisa per litre, respectively, while prices of HOBC, kerosene oil and light diesel oil (LDO) were enhanced by Rs1.46, 0.81 paisa and 0.48 paisa per litre on Saturday. The new prices will be effective from March 15-31.

The Oil Companies Advisory Committee (OCAC) has raised the ex-depot fixed sale price of petrol to Rs37.11 from Rs35.74 per litre.

Pakistan State Oil, Shell Pakistan Limited and the Caltex Oil Pakistan Limited have also increased the price of diesel by 87 paisa per litre to Rs25.93 from Rs25.06 per litre.

The advisory body has fixed the new price of HOBC at Rs41.11 as compared to Rs39.65 per litre. The new rate of kerosene oil is Rs24.62 against the previous Rs23.81 while the LDO price has been jacked up to Rs20.95 from Rs20.47 per litre.

The committee in a statement said the international prices of most petroleum products continued their upward trend due to the ongoing tension on the Iraq front. The fortnightly average Arab Gulf FOB price of Naphta has further increased by $16.38 per ton or 5.3 per cent while average kerosene oil price has increased by $0.72 per barrel or 1.95 per cent. The average exchange rate of the rupee vis a vis the dollar improved marginally by 10 paisa over the fortnight.

Market sources said the oil marketing companies (OMCs) and the OCAC had recommended higher price of Rs1.98 per litre for petrol and Rs1.20 per litre for diesel to the petroleum ministry, but an approval from the ministry came a bit closer to the proposed increase.

The Ministry of Petroleum is the final authority to approve rates recommended by the oil marketing companies and the OCAC.

On Dec 1, petrol was selling at Rs 30.25 per litre as compared to the current increase to Rs37.11 per litre, showing a raise of 23 per cent or Rs6.86 per litre. Diesel was available at Rs20 per litre two months back as compared to new price of Rs25.93, up by 30 per cent or Rs 5.93 per litre.

The increase of 87 paisa per litre in diesel will again provoke transporters to demand a further increase in fares.