ISLAMABAD:
Fuel prices may be slashed by up to Rs6.44 per litre, and CNG prices by Rs4.60 per kilogramme, following a reduction in global oil prices.
The new prices will be effective between July 1 and 15, following a new mechanism of fortnightly review of oil prices. In a summary moved to petroleum and finance ministries on Thursday, the Oil and Gas Regulatory Authority (Ogra) proposed that the federal government reduce petroleum prices by up to Rs6.44 per litre.
“The CNG price is linked to 60% parity of petrol, and so the price of CNG will decline by Rs4.60 per kg following the cut in prices of petrol,” a senior government official said.
In the summary, Ogra suggested passing on the full reduction in international oil prices to consumers since the finance ministry has no space to adjust the cut in oil prices in Petroleum Levy. The rates of the levy on petroleum products are already at the maximum level fixed by parliament. The levy on petrol stands at Rs10, high speed diesel (HSD) Rs8, HOBC Rs14 and kerosene oil Rs6 per litre.
Ogra has suggested slashing the price of HOBC by Rs6.44 to Rs106.88 per litre, petrol by Rs5.02 to Rs84.49 per litre, kerosene oil by Rs2.54 to Rs86.25, HSD by Rs2.48 to Rs97.21 and light diesel oil by Rs2.86 to Rs83.71.
The prices of jet fuels JP-1, JP-4 and JP-8 have been proposed to be cut by Rs2.48, Rs3.46 and Rs2.48 to Rs75.95, Rs66.24 and Rs75.63 respectively.
The government will notify the new prices on Saturday after approval of Prime Minister Raja Pervez Ashraf.
Meanwhile, the government is considering a proposal to reduce gas prices for domestic consumers starting July 1. Gas prices for commercial, power, fertiliser and industrial sectors, would not be reduced.
Published in The Express Tribune, June 29th, 2012.
COMMENTS (13)
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I just realized that jet fuel costs less than kerosene and diesel.
wonder if they gonna provide electricity for free ?
My vote for the liberal left always..!!!! even if petrol is Rs 200 per liter...The Right wing conservatives will never vote for the Left even if petrol is free...... Simple as that...
There is no need for the PPP government to reduce the fuel prices after sucking the last drop of the blood from people's veins.
People can still survive without reduction in the oil prices and they will also survive without PPP remain in the government any further.
Due to slow down in world economies (China, India, US and EU) the international price of oil is decreasing. I think within 6-7 month we will see the price to go down to RS 70/ litre.
Guys - this does not have anything to do with elections. The oil prices have fallen in the international market - that is it. Don't find conspiracies in everything that happens around.
Bad things must be criticized but good things must be appreciated. Enjoy and go on a long drive instead of grumbling
@Hassan: My Vote for PPP always! Jiye Bhutto
@Anonymous: Ahhh... Greedy politicians have turned us into a grouchy nation.
Let's welcome this "proposed" price decline and wait till the international oil prices shoot up again and local prices would go insanely (and out-of-proportion) high! :)
Still no vote for PPP... Ker lo, jo marzi kerna hain.... :-)
Reducing fuel prices, and increasing the per unit price of electricity. Net result: Insignificant!
What a joke. Isn't it funny that the government has all of a sudden woken up in the election year. They have never reduced the prices before in connection with the reduction in International prices...