Kerosene hits historic increase, up Rs130.08 to Rs318.81 per litre

• Massive hike follows Rs55 fuel price jump.
• Petrol price was raised to Rs321.17.
• Weekly fuel review follows Hormuz closure shock.

In a historic increase, the price of kerosene has been raised by Rs130.08 per litre, taking the new rate to Rs318.81 from Rs188.73, according to a notification issued on Saturday.

The increase has been applied from today (Saturday), the notification said.

The development comes a day after the federal government raised petrol and diesel prices by Rs55 per litre as surging global oil prices, fuelled by the US-Israel war with Iran, put pressure on domestic energy costs.

The announcement was made by Petroleum Minister Ali Pervaiz Malik in a press conference alongside Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.

The new price of petrol was set at Rs321.17 per litre from Rs266.17, while the diesel rate was increased to Rs335.86 per litre from Rs280.86 after the review.

This marked the first weekly review of fuel prices since regional tensions threatened a major share of global energy flows following the closure of the Strait of Hormuz.

Previously, the federal government adjusted petroleum prices on a fortnightly basis.

The government also increased the petroleum development levy (PDL) on petrol from Rs84.40 to Rs105 per litre, while reducing the levy on high-speed diesel from Rs76.21 to Rs55 per litre.

The US-Israel war on Iran and Tehran's retaliatory attacks across the Gulf region have upended the world´s energy and transport sectors, virtually halting activity in the Strait of Hormuz.

Crude soared 8.5% on Friday and was up nearly 30% for the week after President Donald Trump said only the "unconditional surrender" of Iran would end the Middle East war.