ISLAMABAD, July 20: The government on Sunday allowed the highest ever increase in the prices of almost all petroleum products — ranging between 10 and 18 per cent. New prices came into force with immediate effect.

According to a notification issued by the Oil and Gas Regulatory Authority (Ogra), the highest increase of 17.4 per cent was in the price of kerosene, followed by 15 per cent in that of light diesel oil.

Prices of petrol and high octane blending component have gone up by 14.5 per cent and eight per cent, respectively.

The price of petrol has been jacked up by Rs10.97 a litre to Rs86.66 from Rs75.69 per cent, an increase of 14.5 per cent. This is the single largest increase in motor spirit prices.

The price of kerosene was increased by 17.4 per cent or Rs8.64 per litre –from Rs49.73 to Rs58.37. A 15 per cent increase, of Rs7.45, was allowed in the price of light diesel oil to Rs56.50 per litre from Rs49.05. HOBC price is now only a few rupees away from crossing the psychological barrier of Rs100 a litre. Its new price is Rs96.08, up by Rs7.23 per litre from the old price of Rs88.85.

The price of jet fuel JP-1 has been increased by 10 per cent or Rs8.26 per litre to Rs90.36 per litre from Rs82.10. After nine per cent increase, JP-4 will now be sold at Rs6.96 a litre higher – Rs83.75 from Rs76.79. JP-8’s price has been increased by 9.4 per cent or Rs8.25a litre – from Rs87.79 to Rs96.04 per litre.

The increase in the petroleum prices was notified by Ogra after its approval by the prime minister who decided to delay the quarterly price review for a week, apparently because of his first speech to the nation on the 100-day performance of his government. The oil price revision is usually made on the first and 15th of every month.

This is the seventh increase in petroleum prices since February 17 this year and sixth allowed by the PPP-led coalition government since its inception four months ago. The prices of LDO, kerosene, petrol, and HOBC have surged by about 73 per cent, 65 per cent, 61.4 per cent and 48 per cent, respectively.

The price of petrol was Rs53.70 at the end of February. It was raised to Rs58.70 on March 1 and Rs62.81 on March 16. On April 18, the price of petrol was increased to Rs65.81, to Rs68.81 on May 1 and Rs75.69 on June 29.

Even before the official announcement, retailers slowed down their sales to earn a windfall on available stocks.

A salesman at a retail outlet said petroleum dealers could have earned up to Rs50,000 to Rs70,000 in a few hours while petroleum companies’ profits would be close to a billion rupees.

The soaring oil price in the international market is causing severe problems for developing economies like Pakistan because it is creating inflationary pressures, increasing budget deficit, upsetting the balance of payment and slowing down economic growth.

In its announcement, the Oil and Gas Regulatory Authority (Ogra) said the increase had become “inevitable due to a record surge last fortnight in the international prices” and that the impact was “passed on partially” to the consumers.

It said the retail prices still carried a subsidy of Rs33.93 per litre on kerosene, Rs29.40 on light diesel and Rs35.42 per litre on high-speed diesel, although the government did not announce new HSD price.