ISLAMABAD - The government on Saturday has increased the prices of petroleum products up to Rs4 per litre for the month of October, which will fuel inflation.

An increase of Rs2/litre each has been decided in the prices of petrol, high speed diesel and light diesel oil for the month of October, according to ministry of finance. The price of Kerosene Oil would be increased by Rs4/litre, from October 1 to 31st.

The increase in oil prices would directly impact the inflation rate, which is currently under control. The CPI based inflation had recorded at 3.16 percent during first two months (July and August) of the current fiscal year 2017-18.

On the basis of the prevailing prices in the international market, Ogra [oil and gas regulatory authority] had recommended Rs2.35/litre price increase for MS 92 RON Petrol, Rs2.17 for High Speed Diesel (HSD), Rs19.32 for Kerosene Oil and Rs14.09 for Light Diesel Oil (LDO). However, the government partially accepted the Ogra proposal.

The per litre petrol price for October has thus been increased to Rs73.50 from Rs 71.50, HSD to Rs79.40 from Rs77.40, LDO to Rs46 from Rs44 and kerosene to Rs48 from the existing price of Rs44 per litre.

The government has increased the prices of light diesel oil and kerosene oil after a long time. Earlier, it had been maintaining the price of these two petroleum products to provide relief to the people.