Govt, however, increases HOBC price, cuts kerosene and light diesel oil rates. PHOTO: FILE
ISLAMABAD:
The government has decided to leave petrol and high-speed diesel prices unchanged for the month of December despite a recommendation by the regulator for price revision in line with movements in the international market.
The Oil and Gas Regulatory Authority (Ogra) - the industry regulator - had worked out a reduction of Rs1.05 per litre (1.4%) in the price of petrol and an increase of Rs1.42 per litre (1.7%) in the rate of high-speed diesel.
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However, Finance Minister Ishaq Dar announced on Monday that prices of the two vital petroleum products had been kept unchanged for December following approval of Prime Minister Nawaz Sharif.
However, the premier gave the go-ahead to the recommendation for an increase in the price of high octane blending component (HOBC) and cut in prices of kerosene oil and light diesel oil.
In a summary prepared and sent to the Ministry of Petroleum and Natural Resources and the Ministry of Finance, Ogra had estimated that the price of HOBC should rise by Rs0.87 per litre (1.1%). However, it suggested a reduction in prices of other petroleum products such as kerosene oil, a cut of Rs0.79 per litre (1.4%) and light diesel oil, a reduction of Rs0.36 per litre (0.7%) keeping in view the changes in global oil prices.
In line with the finance minister’s announcement, the price of high-speed diesel, which is widely used in transport and agriculture sectors, will stay at the existing level of Rs83.79 per litre and petrol, which is used in passenger cars, at Rs76.26 per litre.
The decision to keep the diesel price unchanged will have a positive impact on the farmers and transporters. The growers have already been raising voice against the growing cost of inputs and a rise in the high-speed diesel rate would have compounded their miseries.
From November, the demand for diesel has jumped with the sowing of different crops under the Rabi season.
The price of HOBC, used by the elite class in luxury vehicles, has been increased by Rs0.87 to Rs80.66 per litre.
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However, the price of kerosene oil, which is consumed for cooking purposes in remote areas where liquefied petroleum gas is not available, has gone down by Rs0.79 to Rs56.32 per litre.
In the case of light diesel oil, a fuel that has demand from industrial units, the price has been slashed by Rs0.36 to Rs53.32 per litre.
Published in The Express Tribune, December 1st, 2015.
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