The government on Saturday increased the prices of petroleum products following fluctuation in global oil rates.

Prices of petrol and high-speed diesel were hiked by Rs3.01 per litre and Rs3.00 per litre, respectively.

The new price of petrol will be Rs147.83, highest in history, against the previous Rs144.82 per litre. The new price of HSD will be Rs144.62 per litre as against Rs141.62 per litre.

Meanwhile, the prices of kerosene and light diesel oil (LDO) were also increased by Rs3 and Rs3.33 per litre, respectively. The new price of kerosene is Rs116.48 per litre and that of light diesel oil is Rs114.54 per litre.

Prices of petroleum products may soar further

"Against the recommendation of OGRA for an increase of Rs5.52/litre in petrol and Rs6.19/litre in HSD prices, the Prime Minister has directed to absorb the international prices through a further cut in Sales Tax," read a notification issued by the Finance Division.

"The finance ministry will take Rs2.6-billion hit on revenue due to reduced Sales Tax," it said.

"Petroleum products are showing a fourth-straight weekly gain and witnessed an increase of 6.2% just in last week in the international market," added the notification.

"The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets."

Petrol prices are a major component of Pakistan's inflationary calculations.

Sources said that depreciating rupee and rise in the price of Brent Oil forced the government to increase the prices.

The government has already fulfilled its commitment to raise the price by Rs4 per litre on account of petroleum levy each month by doing so in the first half of January.