After a week’s relief, consumers are likely to face another hike in petrol prices of Rs3.04 per litre, effective from Monday, under the weekly oil prices review mechanism.
Following a fortnight of steady increases in prices, consumers got some relief the past week when the price of petrol was cut by Rs6 per litre, bringing it down to Rs102.45. Prices had been hiked by Rs6.82 on September 16 and by Rs1.73 on September 23, registering a total increase of Rs8.55 in 15 days.
While the price of high speed diesel (HSD) is likely be slashed by Rs2.70 per litre, the prices of other petroleum products, such as kerosene and light diesel, will also rise in the coming week, according to a summary forwarded by the petroleum ministry to the finance ministry on Saturday.
The government will approved the revision in oil prices on Sunday (today), following which they will be effective Monday onwards.
Price changes
The price of petrol will rise from Rs102.45 to Rs105.49 per litre. HSD, meanwhile will decrease from Rs113.16 to Rs110.46.
Kerosene will rise by Rs0.72, reaching Rs101.95 per litre, while light diesel will rise by Rs0.48 to Rs96.70 per litre.
Jet fuels JP-1, JP-4 and JP-8 will go up by Rs0.72, Rs0. 44 and Rs0.72 respectively, reaching Rs91.14, Rs82.94 and Rs90.38 per litre respectively.
Following the change in petrol prices, the price of compressed natural gas (CNG) – which maintains 60% parity with petrol prices – will rise by Rs2.78, hitting Rs93.79 per kg in Region I (Balochistan, Khyber-Pakhtunkhwa) and by Rs2.54, hitting Rs85.68, in Region II (Sindh, Punjab).
Maintain prices
While the finance ministry has asked the Oil and Gas Regulatory Authority (Ogra) not to recommend any cut in fuel prices, it has asked the federal government to maintain the current price of petrol by adjusting the hike with the petroleum levy.
Experts say the new weekly oil prices review mechanism has failed to benefit consumers or the government, and has instead worked in favour of oil dealers and hoarders.
The Federal Board of Revenue recently informed the Senate Standing Committee on Finance that the government lost Rs7 billion in revenue due to this new mechanism. Following this revelation, the panel has recommended switching back to the monthly review mechanism.
Published in The Express Tribune, October 7th, 2012.
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