ISLAMBAD: The government has raised the price of petrol by around Rs3 per litre, according to a notification issued by the Finance Division late on Saturday night.

According to the notification, the price of petrol has been increased by Rs3.01, from Rs144.82 to Rs147.83, the price of high speed diesel (HSD) has been raised by Rs3, from Rs141.62 to Rs144.62, the price of kerosene has been jacked up by Rs3, from Rs113.48 to Rs116.48, and the price of light diesel oil (LDO) has been increased by Rs3.33, from Rs111.21 to Rs114.54.

The new prices will be effective from January 16 (Sunday).

The Finance Division, in its notification, reasoned that "petroleum products are showing [a] fourth straight weekly gain and witnessed an increased of 6.2 per cent [...] last week in the international market."

It said the price of petroleum products in the international market was "presently at the highest level since last year".

Meanwhile, it added, the existing sale tax rate and petroleum levies on various products were "much below the budgeted targets".

The notification mentioned that the Oil and Gas Regulatory Authority had, therefore, recommended an increase of Rs5.52 per litre in the price of petrol and of Rs6.19 per litre in the price of HSD.

But, it stated, "Prime Minister Imran Khan has directed to absorb the [impact] of international prices through a further cut in the sales tax from last fortnight."

"The finance ministry will [...] take a revenue hit of Rs2.6 billion due to the reduction in the sales tax," the notification said.

"Therefore, the government has decided to make a partial increase in petroleum products' prices in order to provide relief to end consumers," it added.