ISLAMABAD: In a major development, the federal government jacked up the price of petroleum products by up to Rs12.03, a notification from the Finance Division said Tuesday.
The new rates will be effective from February 16 and will be revised at the end of the month.
Citing the reason for the increase in the petrol rates, which have for the first time in history moved past Rs150 per litre, the Finance Division said: "The prices of petroleum products are showing [a] drastic increase in the international market and presently are at the highest level since 2014."
The statement said despite the increase in prices since the beginning of the year, Prime Minister Imran Khan had deferred the last review of petroleum products' prices on January 31 to provide utmost "relief to the consumers".
The government levied zero per cent sales tax and reduced petroleum levy rate against the budgeted targets, the Finance Division said.
As a result, the government is bearing "a revenue loss of around Rs35 billion (fortnightly) on account of budgeted to existing PL and ST rates".
In the light of the losses, the prime minister has considered the recommendation to increase the prices of petroleum products, the statement said.
| Product | Existing price | New price | Increase/decrease |
| Petrol | Rs147.83 | Rs159.86 | +Rs12.03 |
| High speed diesel | Rs144.62 | Rs154.15 | +Rs9.53 |
| Kerosene oil | Rs116.48 | Rs126.56 | +Rs10.08 |
| Light diesel oil | Rs114.54 | Rs123.97 | +Rs9.43 |