Govt announces massive fuel price hike

The government on Friday  announced a fresh hike in petroleum products, increasing the prices of petrol and high speed diesel by Rs10.49 and by Rs12.44 respectively for the next fortnight.

The development came a day after the government hiked power tariff by Rs1.39 per unit.

According to a notification issued by the Ministry of Finance, the price of kerosene oil has been increased by Rs10.95 per litre while light speed diesel has got costlier by Rs8.84 per litre.

“At present, oil prices have risen around $85 a barrel (Global Benchmark Brent) highest since October 2018,” reads the finance ministry notification.

It added that entire energy chain prices have witnessed a strong surge in the past couple of months due to higher demand for energy spots and supply bottlenecks.

In the current scenario, the ministry said, the government has absorbed the pressure and provided maximum relief to consumers by keeping Petroleum Levy and Sales Tax to a minimum. Therefore, prices worked out by OGRA have been approved.

The new prices of petroleum products will be effective from October 16 (today).