ISLAMABAD: Government has decided to cut prices of diesel and petrol by Rs2 per litre, said Finance Minister Asad Umar on Friday.

Addressing a press conference , he said the government wants to pass on less burden to the people and as much relief as possible.

He said the prices of diesel and petrol are determined after keeping in the view the prices of the time when the ships leave ports after loading diesel and petrol.

He said as many two ships of each petrol and diesel arrived last month.

Umar expressed the hope that prices of diesel and petrol would further come down next month.

He also announced Rs3 reduction per litre in kerosene oil, adding that the government is also reviewing tax on POL prices.

Commenting on rupee's devaluation in the inter bank market on Friday, he said it was linked to increased demand of US dollar and less availability of the greenback.

He said it was carried out by State Bank of Pakistan and went on to explain as to why the need to do so arises.

Umar said the the dollar's value surged because the government gave subsidies to foreign investors at the expense Pakistan's taxpayer.

He said the previous government artificially maintained the value of rupee- dollar exchange rate.