ISLAMABAD: What was once an exaggerated expression to bemoan inflation has now become reality: The price of diesel has crossed Rs100.
The Oil and Gas Regulatory Authority (Ogra) announced an increase in oil prices by up to 6% per litre effective from Wednesday (today), on account of an increase in global oil prices.
Sources said that Ogra had recommended keeping oil prices unchanged but the finance ministry resisted the proposal and supported an increase in prices to avoid any subsidy.
Ogra has raised the per litre price of petrol by Rs5.37, High Speed Diesel (HSD) by Rs4.64, High Octane Blending Component (HOBC) by Rs6.29, kerosene oil by Rs2.78 and Light Diesel oil (LDO) by Rs3.43.
The new per-litre price of petrol is Rs94.91, kerosene oil Rs92.02, HOBC Rs118.20, LDO Rs90.21 and HSD Rs103.46.
While the rationale for this month’s price rise is global oil price hike, the government had increased prices of petrol and HOBC in January, too, despite a decline in international crude prices and Ogra’s recommendation to keep prices unchanged.
Meanwhile, Ogra had calculated an increase of Rs3.11 per-litre for diesel, in line with the hike in global oil prices, but the government raised the hike to Rs4.64 per-litre, in a bid to earn more revenue through petroleum levy.
Published in The Express Tribune, February 1st, 2012.
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