LAHORE: The government increased the prices of diesel by Rs5 per litre for the next 15 days and kept the prices of petrol unchanged.
As per the notification, the new price of diesel stands Rs251.92. Earlier, it was expected that the prices of petrol would increase in the wake of hike in prices of crude in international market.
But the government decided not to increase the prices of petroleum, giving a relief to the masses, already facing inflation and inflated electricity bills.
The new prices came into effect from midnight on Oct16, according to an official notification.
“The Oil and Gas regulatory Authority (Ogra) has worked out the consumer prices of petroleum products, based on the price variations in the international market,” read a statement released by the Finance Division on late Tuesday.
As per the official statement, the price of HSD rose to Rs251.29 after an increase of Rs5 per litre.
Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers.
Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting.
On the other hand, a significant portion of the transport sector relies on high-speed diesel.
Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
It may, however, be noted that Brent crude futures were down $2.81, or 3.6%, to $74.65 per barrel, having dropped earlier to $74.26, its lowest since Oct. 2. The US West Texas Intermediate futures fell $2.72, or 3.7%, to $71.11 per barrel. The contract fell as low as $70.75, its weakest since Oct. 3.
