Business | Oil & Gas
Pakistan raises prices of gasoline
Pakistan increased gasoline and diesel prices for the fourth time in two months after record crude oil prices increased import costs for refiners.
- Bloomberg
- Published: 00:30 May 2, 2008
Karachi: Pakistan increased gasoline and diesel prices for the fourth time in two months after record crude oil prices increased import costs for refiners.
The prices of gasoline and diesel were increased by Rs3 and Rs3.05 a litre, respectively, according to a statement on the website of the Oil & Gas Regulatory Authority late on Wednesday. The new prices went into effect yesterday.
Pakistan reviews domestic oil prices fortnightly, in line with global prices. Crude oil reached a record $119.93 a barrel in New York on April 28, the highest since futures trading started in 1983.
Subsidy
Pakistan subsidised oil-product prices for four years until March to shield consumers from high energy costs and to curb inflation. The subsidy cost the nation as much as Rs14.5 billion ($225 million, Dh842.5 million) a month, according to JS Global Capital Ltd. in Karachi.
Gasoline will cost Rs68.81 a litre, or 4.6 per cent more, and diesel Rs44.59 a litre, or 7.3 per cent more.
Pakistan State Oil Ltd., the biggest fuel retailer, and Shell Pakistan Ltd., the second-biggest, sell gasoline, diesel, lubricants and compressed natural gas to consumers in Pakistan.
Pakistan imports about 85 per cent of the oil it uses domestically. Higher fuel prices may stoke inflation, which accelerated to a five-year high in March.
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