The imported furnace oil rates have been increased by Rs1,223 to reach Rs55,830 per ton with effect from Monday, data obtained from a major oil marketing company revealed.
Domestic prices of furnace oil have been on the rise in tandem with international markets. London Brent was selling for almost $98 per barrel on Monday, prompting local refiners to increase prices as well. National Refinery and Pakistan Refinery have raised rates by Rs1,121 to Rs55,882 per ton while Pak-Arab Refinery has increased prices by Rs1,241 to Rs58,883 per ton.
BMA Capital analyst Nurali Barkatali said, “if the government continues to hold fuel prices down to limit inflation, it will risk serious consequences for the fiscal deficit amid low revenues.” He also pointed out that the government will have to pay higher subsidies on electricity as it has placed a freeze on increase in power tariffs.
Published in The Express Tribune, January 18th, 2011.
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