Govt cuts prices of petroleum products & CNG
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.
COMMENTS (10)
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What an honor i must say. What is the point of this "generous" benefit if you are not even going to provide petrol !? Do you see the lines at the petrol pumps?? And if electricity is supposed to be less costly, then aren't you supposed to SUPPLY it? Stop the forced loadshedding for God sake! As if people do not have enough troubles.....
Price of natural gas in pakistan is twice what it is in usa.
its all about General Election , brief,simple and artificial
So who's going to cut the price that Pakistan has to pay for fuel? When demand is high and supply is low the price is suppose to go up --- but maybe that only works in the rest of the World?
there is no easy solution to ban cng across the country. but inorder to safe industry and to shrink loadshedding. the government in a first move should restrict usage of cng to only 800 cc vehciles. already the bus tariff is higher and transporters are charging fares as they are running their vehicles on petrol. so ban should be imposed only 800 cc are allowed. moreover, petroleum product prices would be more cheaper than the decision if our currency would not have been depreciated. in almost nine months on a conservative estimate, dollar is up by rs 10. the government should have people who are from the field not an alien to the subject.
yes i am with ali the government should withdraw from the huge taxes on the petroleum products we will quit CNG, and i would ask Petroluem minister in which country is the natural gas selling at the price of 14 to 16 $
There are two main factors in this regard 1-Oil prices are reduced in international oil market and 2-The general elections are near to be held But the nation should not be happy and rejoice for a long time because this is limited time offer and just in the light of above two main factors reduction the oil prices is not the benevolence of PPP's leaders on the nation.PPP's leaders are doing so for their own benefits and advantages for the next general elections.
Yea, Remove the Petroleum Levy Tax and we'll quit using CNG
So the drama of election tear starts and after 4 years this gov is now thinking of relief to the consumer