Consumers are likely to face a hike in petrol prices by Rs6.82 per litre in line with the fluctuation in global oil prices. However, the price of High Speed Diesel (HSD) may witness a decline of Rs1.75 per litre.
On Saturday, the petroleum ministry submitted a summary to the finance ministry to notify the new prices from Monday.
Following the hike in petrol prices, the price of Compressed Natural Gas (CNG) may also jump up to Rs6.23 per kilogram due to its link with 60% parity of petrol price.
The government had raised prices of HSD by Rs3.39 per litre whereas the price of petrol was slashed by Rs4.65 per litre last Sunday in line with the current fluctuation in global oil prices.
However, consumers will face relief in the prices of HSD by Rs1.75 per litre next week due to a decline in global oil prices.
HSD is used by the masses in transport and agriculture sectors. Therefore, a decline in its price may directly impact the lives of many by bringing down inflation and bringing relief to the farming community as well.
Kerosene oil is used in remote areas for cooking where Liquefied Petroleum Gas (LPG) is not available, especially in the northern areas of the country. The government had raised its price by Rs1.85 per litre last Sunday. Another hike of Rs 0.62 per litre is on the cards, which is due to take effect from next week due to fluctuation in global oil prices.
High Octane Blending Component (HOBC) is used in luxury vehicles and its price is expected to go up by Rs1.50 per litre from next week. The government had raised the price of HOBC by Rs3.27 per litre on last Sunday. This product is not used on a large scale basis and is only produced by Pak Arab Refinery Limited (Parco).
Light Diesel Oil (LDO) which is used for industrial purposes may witness a decline in price of Rs0.14 per litre. Its price had jumped up by Rs0.57 per litre last Sunday.
After the proposed hike, the prices of petrol may go up from Rs99.90 to Rs106.72 per litre, HOBC from Rs136.46 to Rs137.96 per litre and kerosene oil from Rs 104.06 to Rs 104.68 per litre. However, the price of HSD may go down to Rs113.77 from Rs115.52 per litre and Light Diesel Oil (LDO) from Rs99.41 to Rs99.27 per litre.
The government is currently implementing a mechanism of weekly basis price review. Thus consumers are due to face a third revision in oil prices during the month of September.
All Pakistan CNG Association (APCNGA) and the government have reached an agreement regarding CNG prices. According to the agreement, the prices of CNG are linked with a 60% parity of petrol price. Therefore, the increase in price of petrol may lead to hike in its price Rs6.23 per kilogram in region-1 and Rs5.69 per kg in region-2.
The CNG price may be hiked to Rs97.68 from Rs91.45 kg in region-1, including the areas of Khyber-Pakhtunkhwa (K-P), Balochistan & Potohar Region (Rawalpindi, Islamabad & Gujarkhan) and Rs89.24 from Rs83.55 per kg in region-2 including the areas of Sindh and Punjab (Excluding Potohar Region).
Published in The Express Tribune, September 16th, 2012.
More in BusinessPetrol price up by Rs6.82 per litre