Petrol soars past Rs100 barrier — again
Fuel prices reach all-time highs after third price hike in the month.
ISLAMABAD:
Fuel prices reached record highs after the government raised the prices of all petroleum products and compressed natural gas (CNG) for the third time this month on Friday.
Petrol, hiked by Rs7.77 per litre, will now cost Rs104.55 per litre following the latest weekly review of fuel prices. The price of petrol has risen by almost Rs20 cumulatively in August.
Applicable from today, Saturday, diesel – used mostly in public transport, tractors and tube wells – would be sold at Rs112.13 per litre, after an increase of Rs5.94 per litre.
Similarly, the price of CNG in northern region, including Khyber-Pakhtunkhwa, Potohar and Balochistan, has been increased by Rs7.11 to Rs95.72 per kilogramme. CNG price in the second region – Sindh and Punjab, excluding Potohar – has been raised by Rs6.50, to retail at Rs87.44 per kg.
No cushion for consumers
A senior government official said the petroleum ministry had moved a summary on Friday, recommending that the finance ministry absorb half of the total impact of the global hike in fuel prices by cutting the rate of petroleum levy – a tax the government charges fuel consumers.
The finance ministry, however, rejected the proposal and decided to go ahead with the full price hike. Besides increase in international prices, the worsening rupee-dollar exchange rate is another reason for the steep price hike.
Weekly review
Earlier, following political pressure, the government was forced to review its decisions in case of significant increase in fuel prices.
Back then, however, prices were reviewed on a monthly basis; that was changed to a fortnightly review, and now prices are determined on a weekly basis.
The weekly price review is already facing criticism from opposition parties and parliamentary panels.
The Public Accounts Committee and the National Assembly’s standing committee on petroleum, both headed by treasury members, had rejected the increase in petroleum prices announced on August 22, immediately after Eid. Critics of the weekly review say it benefits the petrol pump owners and oil marketing companies, both of whom hoard the products when they feel a price increase is likely.
Other fuels
High Octane Blending Component (HOBC), used in premium cars, has faced the steepest hike in the current review. After an increase of Rs8.18, HOBC will be sold at Rs133.19 per litre this week.
The price of kerosene, used in cooking stoves and lamps in far-flung areas where other fuels are not available, has also been increased by Rs5.86 per litre. Its price has soared to Rs102.21 per litre.
Light Diesel Oil, used in industry, would be sold at Rs98.84 per litre, after an increase of Rs5.54 per litre.
Published in The Express Tribune, September 1st, 2012.
Fuel prices reached record highs after the government raised the prices of all petroleum products and compressed natural gas (CNG) for the third time this month on Friday.
Petrol, hiked by Rs7.77 per litre, will now cost Rs104.55 per litre following the latest weekly review of fuel prices. The price of petrol has risen by almost Rs20 cumulatively in August.
Applicable from today, Saturday, diesel – used mostly in public transport, tractors and tube wells – would be sold at Rs112.13 per litre, after an increase of Rs5.94 per litre.
Similarly, the price of CNG in northern region, including Khyber-Pakhtunkhwa, Potohar and Balochistan, has been increased by Rs7.11 to Rs95.72 per kilogramme. CNG price in the second region – Sindh and Punjab, excluding Potohar – has been raised by Rs6.50, to retail at Rs87.44 per kg.
No cushion for consumers
A senior government official said the petroleum ministry had moved a summary on Friday, recommending that the finance ministry absorb half of the total impact of the global hike in fuel prices by cutting the rate of petroleum levy – a tax the government charges fuel consumers.
The finance ministry, however, rejected the proposal and decided to go ahead with the full price hike. Besides increase in international prices, the worsening rupee-dollar exchange rate is another reason for the steep price hike.
Weekly review
Earlier, following political pressure, the government was forced to review its decisions in case of significant increase in fuel prices.
Back then, however, prices were reviewed on a monthly basis; that was changed to a fortnightly review, and now prices are determined on a weekly basis.
The weekly price review is already facing criticism from opposition parties and parliamentary panels.
The Public Accounts Committee and the National Assembly’s standing committee on petroleum, both headed by treasury members, had rejected the increase in petroleum prices announced on August 22, immediately after Eid. Critics of the weekly review say it benefits the petrol pump owners and oil marketing companies, both of whom hoard the products when they feel a price increase is likely.
Other fuels
High Octane Blending Component (HOBC), used in premium cars, has faced the steepest hike in the current review. After an increase of Rs8.18, HOBC will be sold at Rs133.19 per litre this week.
The price of kerosene, used in cooking stoves and lamps in far-flung areas where other fuels are not available, has also been increased by Rs5.86 per litre. Its price has soared to Rs102.21 per litre.
Light Diesel Oil, used in industry, would be sold at Rs98.84 per litre, after an increase of Rs5.54 per litre.
Published in The Express Tribune, September 1st, 2012.