Government likely to raise oil prices by Rs 3-4/ litre

The government is likely to increase oil prices by Rs 3-4 per litre on the back of hike in global oil prices from April 1, 2010. Sources said that at present, the average oil price in gulf market ranged between 77 to 78 dollars per barrel that accounted for Rs3 to Rs 3.15 per litre increase in oil prices in Pakistan.
"If oil price in gulf market exceeded 80 dollars per barrel, the government will be forced to increase petroleum products'' prices by Rs3-4 per litre from April, 1," they added. The government had increased petroleum products'' prices on February 1, 2010, with a substantial hike of Rs6.10 per litre in petrol price.
But on March 1, it announced a nominal cut in oil prices ranging from Re0.64 to Rs2.56 per litre. The current price of motor spirit is Rs70.57 per litre, kerosene oil Rs61.50, light diesel Rs59.47 per litre and HOBC price Rs86.06 per litre. Now government is going to raise the prices by Rs3-4 per litre from April 1 that would be a shock for the inflation-hit consumers.