The Oil and Gas Regulatory Authority (Ogra) has proposed reducing petroleum prices by up to Rs11.75 per litre following the fall in global crude oil rates. The authority is also likely to slash Compressed Natural Gas (CNG) prices by Rs4 to Rs4.50 per kilogramme.
In a summary sent to the finance and petroleum ministries on Thursday, Ogra suggested passing on the reduction in international oil prices to the consumers from June 16. Average global oil prices fell to $99 per barrel from $111 prevalent at the end of May.
A senior government official said that Ogra wants the government to cut the prices of High Octane Blending Component (HOBC) by Rs11.75 per litre, petrol by Rs10.46, kerosene oil by Rs5.26, High Speed Diesel (HSD) by Rs6.08, Light Diesel Oil (LDO) by Rs5.02, JP-1 by Rs8.70, JP-4 by Rs6.63 and JP-8 by Rs5.25. JP-1, JP-4 and JP-8 are jet fuel.
The government will issue a notification regarding the new prices on Friday (today) following Prime Minister Yousaf Raza Gilani’s approval.
“At present, the consumers will get full relief on account of reduction in oil prices proposed by the regulator since the finance ministry had no space to adjust the cut in oil prices in the Petroleum Levy (PL),” an official said, adding that the PL rates have reached the level fixed by parliament.
The PL rate on petrol stands at Rs10 per litre, HSD Rs8, HOBC Rs14 and kerosene Rs6 per litre. These rates were approved by parliament. The government is likely to collect Rs4.5 billion on account of the PL from June 16 till the end of the current month.
The government, at the beginning of June, had cut oil prices by up to 7.9%.
Published in The Express Tribune, June 15th, 2012.
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