ISLAMABAD  -   The government on Thursday increased prices of the High Speed Diesel (HSD) by Rs4.75 per litre and petrol by Rs2.50 per litre.

According a notification issued by the Ministry of Finance, the prices of all petroleum products have been increased for March.

The price of Kerosene Oil (SKO) was increased by Rs4 per litre while price of Light Diesel Oil was enhanced by Rs2.5 per litre, said the notification.

After the increase of Rs4.76 per litre (4.45 percent) increase in the price, High Speed Diesel (HSD) will go up from Rs106.68 per litre to Rs111.43 per litre. With the increase of Rs2.5 per litre (2.76 percent), the price of Ms 92 RON Petrol will increase from current Rs90.38 per litre to Rs92.88 per litre.

The price of Kerosene Oil (SKO) after the increase of Rs4 per litre(4.85 percent) will go up to Rs86.31 per litre from the current Rs82.31 per litre. While the price of LDO after the increase of Rs2.5 per litre (3.33 per cent) will go up to Rs77.63 per litre from 75.03.

However according to an official source, the OGRA had recommended an increase in oil prices mainly due to increase on Petroleum Levy and jump in the oil prices in international market. Last week oil prices rose 3 per cent last week in international market.

The government had directed the OGRA to make their recommendations regarding POL prices on the basis of new Petroleum Levy rates which was increased by 175 per cent by the present government. If the OGRA recommendations would have been based on the Petroleum Levy of December Level then the HSD would have gone down by Rs5 and Petrol by Rs3 per litre said the source. It is pertinent to mention here that earlier Petroleum Levy on HSD was Rs8 per litre and Petrol Rs 10 per litre but from January 1st the government has enhanced the PL. The government has further increased the Petroleum Levy in February and since February 1st and was charging Rs22 per litre PL on HSD, Rs18 per litre on Petrol (Motor Gasoline), Rs6 on Kerosene oil and Rs3 on LDO.

For the March however the Petroleum Levy was a little bit reduced and now the government will be charging around Rs17 PL on HSD and approximately Rs15 per litre on Petrol.

However the finance ministry claimed that based on international oil prices, increase of Rs4.71, Rs9.44, Rs8.06 and Rs5.12 per litre in the price of MS (Petrol), HSD, Kerosene Oil and LDO respectively was worked out by OGRA but the government decided not to pass on the full impact of price increase to the consumers and approved a reduced level of increase as indicated in the table above, said the notification. The new prices shall be applicable from 1st to 31st March 2019.