ISLAMABAD: The government has announced a reduction of up to Rs5.93 per litre in prices of petroleum products for November following a decline in global oil prices. The new prices will take effect today (Tuesday).
In an announcement on Monday, the government did not pass on the full impact of the decline in global markets and slashed petrol price by only Rs1.54 per litre.
According to calculations of the Oil and Gas Regulatory Authority (Ogra), petrol price should have been reduced by Rs5 per litre, but the government adjusted the petroleum levy by increasing it to Rs10 per litre. Petrol will now be sold for Rs87.41 per litre compared to the price of Rs88.95 for October.
Similarly, high-speed diesel (HSD) price should have dropped by Rs0.18 per litre, but the government kept the price unchanged by adjusting the petroleum levy. Filling stations will sell HSD at the same price at Rs94.15 per litre.
Among other petroleum products, the price of kerosene oil has been slashed by Rs0.86 per litre while high octane blending component (HOBC) and light diesel oil (LDO) saw declines of Rs5.93 and Rs1.53 per litre respectively.
The new price of kerosene oil will be Rs85.76 per litre while HOBC will be available at Rs106.72 per litre.
In October, the government had increased prices of three petroleum products, of which the maximum rise was seen in petrol, which came to five per cent compared to the price of September. The price of HOBC was increased by Rs2.72 and that of HSD by Rs1.51.
Since June this year, the government has deregulated prices of petroleum products including petrol, HOBC, light diesel oil, jet fuels JP-1, JP-4 and JP-8. Refineries and oil marketing companies can announce ex-refinery and ex-depot prices every month keeping in view the import parity price, but in a controlled market mechanism the government announces prices on behalf of these companies.
Published in The Express Tribune, November 1st, 2011.
More in BusinessLong-term credit rating remains stable