Lubricants remain unaffected by petrol price cuts

Marketing companies say frequent fluctuation impractical

LAHORE:

While an increase or decrease in the prices of petroleum products is immediately implemented, the benefit of their decline on the engine oil, brake oil and other lubricants has not reached the consumers.

The prices of the lubricants are determined by the oil marketing companies and not the Oil and Gas Regulatory Authority (OGRA).

According to sources, the petroleum ministry had given the oil marketing companies the authority to determine the prices of engine oil, other lubricants and high-octane fuel in 2014-15.

However, despite various governments decreasing the prices of petrol, diesel and other petroleum products dozens of times, the companies do not reduce the prices of lubricants.

According to data obtained by The Express Tribune, the annual consumption of local and imported lubricants in the country is over 193 million litres, with a monthly consumption of over 16 million litres.

The price of motorcycle engine oil in Lahore has reached Rs500 to Rs1,000 per litre, while that a standard three-litre pack for a car and truck is Rs3,500 to Rs7,000. The price of brake oil has also increased over the years.

Despite reduction of petroleum prices by the government, those of the lubricants are not reduced. Petroleum Dealers Association Secretary-General Khawaja Atif said the marketing companies had established a monopoly and set the rates at will, threatening to halt petroleum supply to the fuel stations if their other products were not sold.

On the other hand, Oil Marketing Companies Association Chairman Tariq Wazir Ali said the lubricant price determination had been deregulated. He said the prices of lubricants could not be reduced every 15 days like petroleum products.

Lubricants are linked to the international oil market, with various costs from packaging to processing, he said, adding that lubricants and brake oils are not used like the common petroleum products.