ISLAMABAD, Sept 16: The government increased with immediate effect the prices of three major petroleum products and compressed natural gas by up to 6.82 per cent but reduced the price of diesel by up to 1.5 per cent.

The prices revised on Sunday will remain in place for a week.

The government passed on the impact of international price fluctuation to consumers and ignored recommendations of the standing committees of the two houses of parliament for a price reduction or freeze and rejected an advice of the Oil and Gas Regulatory Authority to partially absorb the hike in prices by lowering the petroleum levy.

But the government decided not to change the rate of petroleum levy. As a result the oil marketing companies have to pass on the increase in the international price to consumers along with Rs6-14 per litre levy and another 16 per cent general sales tax.

The highest increase of more than 6.8 per cent has been made in the prices of motor spirit (petrol) and CNG to maintain the price gap of about 40 per cent between the two competing car fuels.

The price of petrol has gone up to its highest ever level by Rs6.82 to Rs106.72 per litre.

In line with the increase in petrol rates, Ogra which notifies the prices of CNG and kerosene, increased the CNG price by Rs6.24 to Rs97.68 per kg for Khyber Pakhtunkhwa, Potohar and Balochistan (Zone-I) and for Punjab and Sindh (Zone-II) by Rs5.70 to Rs89.24 per kg.

Chairman of the All Pakistan CNG Association Ghiyas Abdullah Paracha condemned the increase and said his association had called an emergency meeting on Wednesday to finalise its future course of action.

The price of kerosene has also hit a new record at Rs104.68 per litre, up by 62 paisa. The HOBC (high octane blending component) also touched a new peak at Rs137.96 per litre, up by Rs1.50.

PRICE CUTS: The prices of High Speed Diesel, which is used mostly by the transport sector, and Light Diesel Oil, which is a negligible consumption, have been slightly scaled down.

The HSD price was reduced by Rs1.75 per litre to Rs113.77. The price of light diesel oil (LDO) was reduced by a marginal 14 paisa per litre to Rs99.27.

Currently, the government is charging a maximum petroleum levy permissible under the finance act at Rs10 per litre on petrol, Rs14 on HOBC, Rs6 on kerosene and Rs8 on HSD in addition to a 16 per cent general sales tax.