The government has increased petroleum products' prices for next 15 days by Rs 3 per litre except kerosene oil to pass on the impact of surge in international market rates to the consumers. The new prices will be effective from May 1 (today). The diesel and petrol prices are increased by Rs 3 per litre. With the new upward revision, HOBC prices increased from Rs 77.77 to Rs 80.77, diesel prices from Rs 41.59 to Rs 44.59, petrol from Rs 65.81 to Rs 68.81 a litre. Kerosene oil prices will remain unchanged at Rs 38.73. Oil and Gas Regulatory Authority (Ogra) issued a formal notification of the new petroleum products prices on Wednesday. Ogra's role in oil review process is just of a calculator. It has no authority to make even the slightest change in the petroleum products' prices fixed by the government for a fortnight. As per the government policy, Ogra calculates the increase in petroleum products' prices in the international market rates for a fortnight and sends its findings to the Ministry of Petroleum (MoP) in the form of a summary, which takes up the matter with the Ministry of Finance (MoF) for its consideration. MoF too like MoP has a role of a postman in the process. It receives the summary from MoP and takes it to the Prime Minister for a final decision. The oil prices are as high as $120 a barrel and these are showing no respite for the consumers in the near future. So far, the government's efforts to reduce burden of rising oil prices on the economy have aborted. Even after repeated increase in the rates during the last two and half months, subsidy on diesel is still very high. The officials of the MoP claim that as on May 1, subsidy on diesel ranges between Rs 18 and Rs 20 per litre. There is no subsidy on petrol prices, but its rates are being revised upward time and again with other petroleum products on the basis of cross subsidy formula to get maximum revenue from this sector. The kerosene prices are being subsidised despite its substantial burden on the economy. The government had not increased kerosene oil prices for the last fortnight primarily to protect the downtrodden section of the society. Despite recommendation for increase in kerosene prices by Ministry of Finance, Prime Minister, Syed Yousuf Raza Gilani decided to continue with the policy for not revising kerosene oil prices at least for current fortnight. Copyright Business Recorder, 2008