Caregivers are keeping the price of petrol unchanged for the next fortnight

• Light diesel has also been reduced by Rs 4.52 per litre.
• Caretaker Prime Minister approves new fuel prices.
• The new prices will be effective from midnight on Thursday.

ISLAMABAD: The caretaker federal government on Thursday decided to maintain the price of petrol at Rs 281.34 per liter for the next fortnight — till December 15.

However, high speed diesel (HSD) has been reduced by Rs 7 per litre, while kerosene oil has been reduced by Rs 3.82 per litre. Light diesel has also been reduced by Rs 4.52 per litre.

Caretaker Prime Minister Anwaar-ul-Haq Kakar has approved the new fuel prices which will be effective from Thursday midnight and will remain in effect until December 15.

The country sets fuel prices on a fortnightly basis after assessing the fluctuating cost of the international energy market and the rupee-dollar exchange rate to pass on the impact to domestic consumers.

On November 15, the caretaker government cut petrol and diesel prices by Rs 2.04 and Rs 6.47 per litre, respectively.

The government charges zero general sales tax (GST) on all petroleum products, while the rate of petroleum levy (PL) on petrol and diesel is Rs 60 per litre.

Diesel is widely used in the transport and agriculture sectors and reducing its price could reduce inflationary effects.

According to brokerage reports published on Wednesday, inflation is expected to jump in November, mainly due to a huge increase in natural gas prices,

The consumer price index (CPI), which measures changes in the prices of goods and services, is likely to rise to 28.6-29.6% year-on-year in November, from 26.9% in October.

A report from brokerage Insight Securities forecast inflation to jump 2.1% month-on-month, defying earlier expectations of a gradual slowdown from September onwards.

Optimus Capital Management estimates that the CPI will increase by 2.9% on a monthly basis, mainly due to an increase of 11.6% in the housing index due to the revision of the price of natural gas and a 1.6% increase in the food index.