News
Saturday, March 01, 2008
Petroleum and power prices go up by 9 percent
ISLAMABAD: The government on Friday approved an increase in power prices by nine percent, petrol prices by Rs 5 a litre and diesel prices by Rs 3.5 a litre. Kerosene prices have also been increased by Rs 3.3 a litre, prices of JP4 fuel by Rs 3.4 a litre and of prices of HOBC fuel by Rs 5 a litre. Oil prices in the international market surpassed 103 US dollars a barrel on Friday for the first time. Caretaker Finance Minister Dr Salman Shah told Dawn News that the increase was inevitable because of the surge in fuel prices in the global market. He said the government would bring down the subsidies on petrol prices to “a reasonable level” in six to 12 months. Sources in the Petroleum Ministry told Daily Times that the government would continue to subsidise petroleum products bearing about Rs 7 billion in the next fortnight. The government still has to pay around Rs 52 billion differential claims to oil marketing companies for capping oil prices for several months, they said. He said the inflation rate would be kept in control despite the increase in the fuel prices. staff report/daily times monitor
Courtesy Daily Times