ISLAMABAD:
The government is expected to hike petrol price by Rs4.15 per litre and compressed natural gas (CNG) price by Rs4 per kilogramme from October 1 following due to adjustment in petroleum levy, rise in global oil prices and depreciation of the rupee against the dollar.
Meanwhile, price of the most used fuel, high speed diesel (HSD) may decline while light diesel oil (LDO) and kerosene oil rate are expected to be kept unchanged.
Oil refineries and marketing companies change prices of all petroleum products every month, except kerosene oil, under controlled deregulation of prices, a mechanism approved by the Economic Coordination Committee. The Oil and Gas Regulatory Authority works as a facilitator under deregulated oil pricing mechanism and notifies new prices.
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Sources told The Express Tribune that the petroleum ministry forwarded a summary on Thursday to Prime Minister Yousaf Raza Gilani and the finance ministry for approval of notifying the new prices today (Friday) for October.
The increase in petroleum levy has also been proposed by 70 paisa per litre on petrol, 10 paisa on high octane and 4 paisa on diesel.
The average price of global crude oil increased by two per cent to $108 per barrel this month against $106 per barrel last month, sources said adding that the rupee weakened to stand at Rs87.52 against Rs86.7 in the preceding month.
The highest jump is in petrol by Rs4.15 per litre, a five per cent bump up from the current price.
High speed diesel price will be cut by 62 paisa per litre with the benefit being passed on to the consumers if the finance ministry does not insist on adjusting it in the petroleum levy, sources said.
The break-up of diesel shows that ex-refinery price of diesel stands at Rs72.03 per litre, inland freight margin at Rs 1.20 per litre, oil marketing companies margin at Rs1.62 per litre, dealers’ margin at Rs1.96 per litre, levy at Rs 2.52 per litre and general sales tax at Rs12.7 per litre.
The government is expected to impose the levy also on CNG in the coming month, but maintaining the price differential of 55 per cent between CNG and petrol agreed to with the All Pakistan CNG Association, sources said.
The increase in price of high octane blending component, a more refined version of petrol, has been proposed by Rs2.72 per litre, a three per cent jump from the current price. 10 paisa on high octane
The price of LDO will decline by 62 paisa per litre and kerosene oil by 12 paisa per litre, in-line with variation in global oil prices.
Published in The Express Tribune, September 30th, 2011.
COMMENTS (3)
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I own i diesel powered vehicle - i hope the price of diesel drops tomorrow ! - Which is also a good thing for our economy cause all of the trucks are on diesel which transport good n stuff all over the country.
Oil prices have dropped in the past month. Can ET atleast come up with a new story line instead of repeating the same old paragraphs from previous stories.
So no more protests on price increase as before, following APC?