Govt cuts prices of petroleum products & CNG
Gas reserves of Qadirpur and Sui fields would deplete by year 2022, says Petroleum Minister Dr Asim Hussain.
ISLAMABAD:
The government on Friday cut oil prices by up to Rs 11.75 per litre following a fall in global crude oil rates. The new prices take effect from today.
The reduction in oil prices will also trigger a cut in electricity rates.
Following a decline in global oil prices, the government has also reduced the rates of Compressed Natural Gas (CNG) by Rs4.37 to Rs 4.82 per kilogram effective from today.
In region-1, the price of CNG has been slashed from an existing Rs86.77 to Rs81.95 per kg, depicting a decline of Rs4.82 per kg. In region-2, the price of CNG has been reduced to Rs74.83 from Rs79.20 per kg, showing a drop of Rs4.37 per kg.
Federal Information Minister Qamar Zaman Kaira, flanked by Petroleum Minister Dr Asim Hussain, told a press conference that the government has passed on the benefit of the downtrend in global oil prices to consumers.
The government had the space to cut oil prices, so it did, he said.
The government has slashed High Octane Blending Component (HOBC) price by Rs11.75 per litre, petrol by Rs10.46 per litre, kerosene by Rs5.26, High Speed Diesel (HSD) by Rs6.08 per litre and Light Diesel Oil (LDO) by Rs5.02 per litre.
The price of petrol has now come down to Rs89.51 per litre from Rs99.97 per litre, HOBC to Rs113.32 from Rs125.07, HSD to Rs99.69 from Rs105.77, kerosene to Rs88.79 from Rs94.05, and LDO to Rs86.57 from Rs91.59 per litre.
He urged the provincial governments to make sure that fuel price cuts have a cascading effect on local economy. He said that revenue generated through petroleum levy was spent on public.
Petroleum Minister Dr Asim Hussain said that Economic Coordination Committee (ECC) had taken a decision to review oil and CNG prices on a fortnightly basis to provide relief to the consumers.
“If the current mechanism proves successful, the oil pricing review mechanism on a weekly basis would be introduced,” Hussain said, adding that the government has also fixed prices of CNG at 60% of petrol after consultation with All Pakistan CNG Association.
Hussain said that power consumers would also get relief following a reduction in oil prices. “The power rates will come down after calculations made by the National Electric Power Regulatory Authority (Nepra),” he said.
The government has also decided to identify the volume of subsidy in separate head in gas bills. He said that rate of gas stands at $14 to $16 per million British thermal unit (mmbtu) whereas its rate in Pakistan is $4 per mmbtu.
He added that gas reserves of major reservoirs Qadirpur and Sui fields would deplete by year 2022. “In Qatar, which has the world’s largest reserves of natural gas, there is no use of pipeline gas in domestic and CNG in vehicles,” he said.
“We should not waste gas just because it is a cheaper source of fuel.”
Published In The Express Tribune, June 16th, 2012.
The government on Friday cut oil prices by up to Rs 11.75 per litre following a fall in global crude oil rates. The new prices take effect from today.
The reduction in oil prices will also trigger a cut in electricity rates.
Following a decline in global oil prices, the government has also reduced the rates of Compressed Natural Gas (CNG) by Rs4.37 to Rs 4.82 per kilogram effective from today.
In region-1, the price of CNG has been slashed from an existing Rs86.77 to Rs81.95 per kg, depicting a decline of Rs4.82 per kg. In region-2, the price of CNG has been reduced to Rs74.83 from Rs79.20 per kg, showing a drop of Rs4.37 per kg.
Federal Information Minister Qamar Zaman Kaira, flanked by Petroleum Minister Dr Asim Hussain, told a press conference that the government has passed on the benefit of the downtrend in global oil prices to consumers.
The government had the space to cut oil prices, so it did, he said.
The government has slashed High Octane Blending Component (HOBC) price by Rs11.75 per litre, petrol by Rs10.46 per litre, kerosene by Rs5.26, High Speed Diesel (HSD) by Rs6.08 per litre and Light Diesel Oil (LDO) by Rs5.02 per litre.
The price of petrol has now come down to Rs89.51 per litre from Rs99.97 per litre, HOBC to Rs113.32 from Rs125.07, HSD to Rs99.69 from Rs105.77, kerosene to Rs88.79 from Rs94.05, and LDO to Rs86.57 from Rs91.59 per litre.
He urged the provincial governments to make sure that fuel price cuts have a cascading effect on local economy. He said that revenue generated through petroleum levy was spent on public.
Petroleum Minister Dr Asim Hussain said that Economic Coordination Committee (ECC) had taken a decision to review oil and CNG prices on a fortnightly basis to provide relief to the consumers.
“If the current mechanism proves successful, the oil pricing review mechanism on a weekly basis would be introduced,” Hussain said, adding that the government has also fixed prices of CNG at 60% of petrol after consultation with All Pakistan CNG Association.
Hussain said that power consumers would also get relief following a reduction in oil prices. “The power rates will come down after calculations made by the National Electric Power Regulatory Authority (Nepra),” he said.
The government has also decided to identify the volume of subsidy in separate head in gas bills. He said that rate of gas stands at $14 to $16 per million British thermal unit (mmbtu) whereas its rate in Pakistan is $4 per mmbtu.
He added that gas reserves of major reservoirs Qadirpur and Sui fields would deplete by year 2022. “In Qatar, which has the world’s largest reserves of natural gas, there is no use of pipeline gas in domestic and CNG in vehicles,” he said.
“We should not waste gas just because it is a cheaper source of fuel.”
Published In The Express Tribune, June 16th, 2012.