ISLAMABAD: The government on Tuesday increased the prices of petroleum products by up to Rs7.67 per litre effective from Wednesday, following a rise in global oil prices.
The price of compressed natural gas (CNG) has also been increased by up to Rs7.02 per kilogram following a hike in petrol price.
This is the second consecutive hike in petroleum product rates due to an increase in global oil prices. The new prices will remain effective for the next two weeks from August 1 to 16.
The Oil and Gas Regulatory Authority (Ogra) had proposed that the federal government cut the rate of the petroleum levy to save consumers from the rising trend in oil prices during Ramazan. However, a senior official at the petroleum ministry said that the finance ministry shot down the proposal, as petroleum levy was an easy source of collecting tax from the consumers to bridge its budget deficit.
The official said that the government would collect over Rs15 billion from consumers on account of the petroleum levy and General Sales Tax (GST) during the first two weeks of August.
According to Ogra notification, the price of petrol has been raised by Rs7.67 per litre, High Octane Blending Component (HOBC) Rs7.64 per litre, kerosene Rs4.64, High Speed Diesel (HSD) Rs4.58, Light Diesel Oil (LDO) Rs4.78, and the price of jet fuel JP-1 has been increased by Rs4.44 and JP-8 by Rs4.73 per litre.
Following the hike the price of petrol has jumped up from Rs85.90 to Rs93.57 per litre, HOBC from Rs112.52 to Rs120.16 per litre, kerosene oil from Rs88.19 to Rs92.83 per litre, HSD from Rs97.21 to Rs101.79 per litre, LDO from Rs85.33 to Rs90.11 per litre .The prices of jet fuels, JP-1 has increased from Rs77.92 to Rs82.36 per litre, JP-4 from Rs69.31 to Rs 74.04 per litre and JP-8 from Rs77.60 to Rs 82.05 per litre.
The CNG prices are linked with 60% parity of petrol. Keeping in view this, the prices of CNG have also gone up.
The price of CNG in region-I has been increased by Rs 7.02 per kg from Rs 78.65 to Rs 85.67 per kg and Rs 6.34 per kg raise in region-2 from existing Rs71.92 to Rs 78.26 per kg. The region-I includes the areas of Khyber-Pakhtunkhwa, Potohar and Balochistan and region-II includes Punjab and Sindh.
Published in The Express Tribune, August 1st, 2012.