Islamabad: The Pakistan government hiked the prices of petrol and compressed natural gas (CNG) but reduced diesel rates on Monday, just days after protests in neighbour India where diesel tariff saw a sharp Rs 5 hike.

The price of high speed diesel and light diesel were reduced by Rs.1.75 and 14 paisa respectively, reported Dawn.

The government Sunday, however, decided to increase the prices of petrol and Compressed Natural Gas (CNG).

Petrol price has been raised by Rs.6.82. Also, the price of high octane and kerosene oil has been raised by Rs.1.5 and 62 paisa respectively.

The petrol price is now Rs.106.72.

India's opposition parties and some allies of the ruling United Progressive Alliance are upset over the hike in diesel prices and have demanded a rollback.

(Agencies)


Latest News from World News Desk

Gold gains Rs 25 on fresh buying; silver ends flat

 

Gold gains Rs 25 on per 10g fresh buying

 

Tags: bullion report,gold price, silver price, price of gold, price of silver

 

New Delhi: Gold rose by Rs 25 to Rs 32,525 per 10 grams in the bullion market on Monday on seasonal demand amid firm global cues, while silver held steady at Rs 61,900 per kg on limited buying at prevailing prices.

 

Traders said buying activity in gold picked up after the metal rose overseas on concern that a new round of stimulus by the US Federal Reserve will stoke inflation, weakening the dollar and boosting demand for the metal as a store of value.

 

In Singapore, gold advanced by 0.4 per cent to USD 1,776.55 an ounce. Back home, fresh buying for the coming festival and wedding season after gold prices lost Rs 400 in the previous session on Saturday.

 

Gold of 99.9 and 99.5 per cent purity on Monday recovered by Rs 25 each to Rs 32,525 and Rs 32,325 per 10 grams, respectively.

 

Sovereign remain steady at Rs 25,450 per piece of eight grams. Silver ready ended steady at Rs 61,900 per kg, while weekly-based delivery traded marginally higher by Rs 20 to Rs 64,300 per kg.

 

Silver coins met resistance at existing higher levels and fell by Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.

 

(Agencies)

 

 

 

 

Oil price hike an achievement but will fuel inflation: RBI

 

Oil price hike might fuel inflation

 

Tags: Oil price hike, Reserve Bank, Reserve Bank of India, RBI Governor D Subbarao, subsidy for LPG

 

New Delhi: The Reserve Bank on Monday termed the government decision to hike diesel prices a "significant achievement", but said the move will put pressure on inflation in the short term.

 

"While the recent upward revision in diesel prices and rationalisation of subsidy for LPG is a significant achievement, in the short-term, there will be pressures on headline inflation," RBI Governor D Subbarao said.

 

The government had last week hiked diesel prices by Rs 5.63 a litre and capped the number of subsidised LPG cylinders to six per family a year.

 

In RBI's mid-quarterly policy review, Subbarao said, "Over the medium-term, it (government move) will strengthen macroeconomic fundamentals". RBI further said that over the longer run, subsidies should be brought down to below 2 per cent of GDP as indicated in the Budget to manage the demand side pressure on inflation.

 

"Containing inflationary pressures and lowering inflation expectations warrant maintaining the momentum of recent policy actions to step up investment, alleviate supply constraints, and improve productivity," Subbarao said.      

 

The government has already taken a slew of reform measures including allowing FDI in multi-brand retail, and foreign carriers to pick up stake up to 49 per cent in aviation companies. Besides, it also cleared minority stake sale in four public sector companies.

 

Subbarao said, "Domestically, growth continues to be weak amidst a negative investment climate; however, the recent reform measures undertaken by the Government have started to reverse sentiments.

 

"Steps taken to increase foreign direct investment (FDI) should contribute to both greater capital inflows and, over the long run, higher productivity, particularly in the food supply chain."

 

(Agencies)