To new heights: Oil prices raised by upto 4.2%

Price of petrol raised by Rs4.12 to Rs113.25 per litre, while price of diesel raised by Rs4.69 to Rs116.95 per litre.

ISLAMABAD: Federal government on Monday raised oil prices by as much as 4.2 per cent, effective from October 1.

An official said that Prime Minister had approved extending a subsidy of Rs2 billion on High Speed Diesel (HSD) and petrol to provide relief to the consumers, however, it did not stop the government from increasing the price of petrol by Rs 4.12 per litre and HSD by Rs 4.69 per litre.

The government has tailored a four-phase plan to reduce the subsidies from about 1.8 per cent of GDP to 0.3-0.4 per cent of GDP in three years. However, it still extended the HSD and petrol subsidies.

The price of high-speed diesel, which is mostly used in cargo and passenger vehicles as well as in agriculture, has been increased by Rs4.69 per litre to Rs116.95 per litre from the existing Rs112.26.

Petrol price has been increased by Rs4.12 to Rs113.25 per litre, compared to old price of Rs109.13.

The price of kerosene oil, which is consumed for cooking in remote areas where liquefied petroleum gas is not readily available, was increased by Rs2.14, taking it to Rs108.13 per litre against existing Rs105.99.

Consumers of light diesel oil, which is mainly used for industrial purposes, faced a hike of Rs2.81 to Rs101.24 per litre from Rs98.43.

The price of high octane blending component, used in luxury cars, rose by Rs5.57 to Rs143.90 per litre compared to existing Rs138.33.