ISLAMABAD - Giving another blow to the commoners' fuel as well as mobility, the government Monday night increased kerosene and diesel prices by Rs 3.5 a litre each while slashing petrol rate by only 5.9 per cent as against international crude's dip of over 30 per cent. The latest changes in the prices of petroleum products are effective from 0000 hours Tuesday September 16, 2008, according to a notification of the Oil and Gas Regulatory Authority issued here on late Monday night. Commuters were really perturbed after the recent increase in the diesel prices that were bound to further inflate the already high fares of public transport. Similarly, Kerosene, which is known as the commoners' fuel, is going up by another 5.9 per cent and would go out of the reach of the crunched purchasing power of the poor public. The government officials claimed that they have increased both the kerosene and diesel in the event of declining international crude oil rate in order to minimize the magnitude of so-called subsidy on both the prices. Meanwhile, sources in the Ministry of Petroleum and Natural Resources told The Nation that the international financial institutions want prices of almost all the petroleum products in Pakistan at par with each other. Therefore, the government intends to lower the rate of supreme petroleum and at the same time to increase the prices of the rest of the items including the diesel, kerosene and even compressed natural gas (CNG). Ideally, from the IFIs' vantage point, the sources added, the prices of all petroleum products should not be less a dollar a litre, if not more, in Pakistan. Meanwhile, a spokesman of the Oil and Gas Regulatory Authority (OGRA), the petroleum sector watchdog, has announced new maximum ex-depot prices of petroleum products effective from September 16, 2008. The new rates of of motor spirit are Rs 81.66 whereas its previous price was Rs 86.66. The new price of HOBC will remain unchanged, which is Rs 96.08. The rates of Kerosene Oil have been increased from Rs 58.37 to 61.87. The new price of Light Diesel is Rs 60.00, against the previous one Rs 56.50, with increase of Rs 3.50. According to new oil prices, only Motor Spirit prices have been cut by Rs 5.00. The price of HOBC will remain unchanged and the rates of Kerosene Oil and Light Diesel have been increased.     According to the spokesman, the price of Motor Spirit has been reduced by Rs.5 per litre, keeping in view the current declining trend in international crude oil prices. The prices of Kerosene, and LDO have, however, been increased by Rs. 3.50 per litre in view of the fact that these products have been heavily subsidized for a long time. This prolonged subsidy has resulted in accumulation of large price differential claims payable to OMC's (Oil Marketing Companies) and refineries by the Federal Government. Even after this increase, the government continues to provide a subsidy of Rs. 10.93 per litre and Rs. 9.49 per litre on Kerosene, and LDO respectively. The price of HSD has also gone up by Rs. 3.50 per litre and the subsidy after this increase will be Rs. 9.42 per litre, the spokesman added.