Petrol price cut by Rs1.70 per litre
Govt deregulates oil prices; Ogra notifies cuts in prices of three products.
ISLAMABAD:
The government’s sudden move to deregulate prices of petroleum products on Tuesday forced Oil and Gas Regulatory Authority (Ogra) to announce a cut in prices of only three petroleum products effective Wednesday (today).
Ogra notified a reduction in price of petrol by Rs1.70 per litre, kerosene oil by Rs5.05 per litre and high speed diesel (HSD) by Rs3.20 per litre.
The new prices of petrol, kerosene oil and HSD would be Rs86.71, Rs84.65 and Rs94.11 per litre, respectively.
The authority will notify the new prices of High Octane Blending Component (HOBC), JP-1, JP-4 and JP-8 fuel today (Wednesday), giving oil retailers the opportunity to profit by charging consumers the existing rate of products.
The government has deregulated prices of all petroleum products, except kerosene oil, effective from June 1, 2011, said Ogra spokesperson Syed Jawad Naseem while addressing a press conference here.
Naseem said that ex-refinery price of petrol has also been deregulated following the decision of Economic Coordination Committee (ECC) of the cabinet taken on October 6,2010.
“After this, the government will not give any money to Pak Arab Refinery Limited on account of price differential claims,” he said, adding that Pakistan State Oil’s cost of petrol supply would be benchmark for other OMCs.
“Ogra will monitor the prices of petroleum products to ensure that Oil Marketing Companies (OMCs) do not overcharge consumers.
“Ogra Ordinance has been sent to the Cabinet Division,” the official said, adding that after the amendment in the ordinance, Ogra will be empowered to impose certain penalties on OMCs if they are found overpricing.
However, the government has not implemented the ECC’s decision to deregulate inland freight equalization margin.
Ogra on Monday had moved a summary to petroleum and finance ministries with recommendation to reduce prices of petroleum products. The authority suggested a cut of 74 paisa per litre in the price of petrol, 67 paisa per litre cut in HOBC price, Rs5.05 per litre cut in price of kerosene oil and a cut of Rs3.20 per litre for high speed diesel.
The authority also suggested cuts of Rs5.19, Rs5.87, Rs5.86 and Rs4.53 in per litre prices of Light Diesel Oil, JP-1, JP-8 and JP-4 fuel respectively.
Published in The Express Tribune, June 1st, 2011.
The government’s sudden move to deregulate prices of petroleum products on Tuesday forced Oil and Gas Regulatory Authority (Ogra) to announce a cut in prices of only three petroleum products effective Wednesday (today).
Ogra notified a reduction in price of petrol by Rs1.70 per litre, kerosene oil by Rs5.05 per litre and high speed diesel (HSD) by Rs3.20 per litre.
The new prices of petrol, kerosene oil and HSD would be Rs86.71, Rs84.65 and Rs94.11 per litre, respectively.
The authority will notify the new prices of High Octane Blending Component (HOBC), JP-1, JP-4 and JP-8 fuel today (Wednesday), giving oil retailers the opportunity to profit by charging consumers the existing rate of products.
The government has deregulated prices of all petroleum products, except kerosene oil, effective from June 1, 2011, said Ogra spokesperson Syed Jawad Naseem while addressing a press conference here.
Naseem said that ex-refinery price of petrol has also been deregulated following the decision of Economic Coordination Committee (ECC) of the cabinet taken on October 6,2010.
“After this, the government will not give any money to Pak Arab Refinery Limited on account of price differential claims,” he said, adding that Pakistan State Oil’s cost of petrol supply would be benchmark for other OMCs.
“Ogra will monitor the prices of petroleum products to ensure that Oil Marketing Companies (OMCs) do not overcharge consumers.
“Ogra Ordinance has been sent to the Cabinet Division,” the official said, adding that after the amendment in the ordinance, Ogra will be empowered to impose certain penalties on OMCs if they are found overpricing.
However, the government has not implemented the ECC’s decision to deregulate inland freight equalization margin.
Ogra on Monday had moved a summary to petroleum and finance ministries with recommendation to reduce prices of petroleum products. The authority suggested a cut of 74 paisa per litre in the price of petrol, 67 paisa per litre cut in HOBC price, Rs5.05 per litre cut in price of kerosene oil and a cut of Rs3.20 per litre for high speed diesel.
The authority also suggested cuts of Rs5.19, Rs5.87, Rs5.86 and Rs4.53 in per litre prices of Light Diesel Oil, JP-1, JP-8 and JP-4 fuel respectively.
Published in The Express Tribune, June 1st, 2011.