ISLAMABAD: The government has announced an increase in oil prices by up to Rs 4.79 per litre in line with the hike in global oil prices effective from today (Thursday).
The Oil and Gas Regulatory Authority (Ogra) had proposed not to pass on increase in prices of petrol and High Speed Diesel (HSD) but Finance Ministry turned down the proposal fearing that it could affect revenue collection on account of petroleum levy (PL).
The price of petrol has been increased by 55 paisa per litre and High Speed Diesel (HSD) by Rs4.79 per litre. It is interesting to note that government increased the price of HSD on the very day when National Assembly Standing Committee on Petroleum and Natural Resources had strongly opposed any increase in the price of HSD. The standing committee feared that increase in the price of HSD would affect the agriculture sector and also cause rise in inflation.
The prices of kerosene oil and Light Diesel Oil (LDO) have also been increased by Rs3.48 and Rs4.79 per litre respectively.
However, the government has maintained the price of High Octane Blending Component (HOBC) at Rs106.72 per litre for December. The price of HOBC had declined by Rs 1.60 per litre in line with variation of global oil prices but the government adjusted it in petroleum levy to enhance revenue collection on petroleum products.
After the government’s decision to increase rate, the new price of diesel for the month of December will be Rs98.94 per litre, petrol will be Rs87.96 per litre, kerosene oil will be Rs89.24 per litre and LDO will now be sold at Rs86.78 per litre.
LDO is used as fuel in certain pumps and machines mainly used in rural areas.
Though the federal government has deregulated the prices of most petroleum products including petrol, HOBC, LDO, jet fuels JP-1, JP-4 and JP-8, from June 2011, but the prices are still determined by the government.
Published in The Express Tribune, December 1st, 2011.
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