Petroleum product prices to be slashed; petrol to be Rs2.32 cheaper per litre

CNG price to also come down by a maximum of Rs2.12 per kg.

ISLAMABAD:

Consumers may get to enjoy a pre-Eid relief in petrol prices due to a proposed Rs2.32 per litre cut for the coming week. This will make it the second consecutive week during which petrol prices have been slashed during the month: the price of petrol was slashed by Rs2.09 per litre last Sunday.

The prices of all other petroleum products are also expected to witness a nominal decline, in line with a reduction in global oil prices, under the weekly oil prices review mechanism.

After the proposed cut, the price of petrol will come down from Rs103.40 to Rs 101.08 per litre. The prices of Compressed Natural Gas (CNG) will also witness a decline of up to Rs2.12 per kilogramme, due the linking of the fuel’s price at 60% parity of petrol.

After a constant decline in High Speed Diesel (HSD) prices for last few weeks – which is used mostly in the transport and agriculture sectors – its consumers faced a price hike of Rs3.16 per litre last Sunday following a fluctuation in global oil prices. HSD consumers are now expected to benefit from a nominal price cut of Rs0.33 per litre, which will bring its price down to Rs113.29, from the existing Rs113.62 per litre.

The petroleum ministry has submitted a summary to the finance ministry on Saturday, so that it may notify the new prices from coming Monday.

Kerosene oil, which is used for cooking purposes in remote areas where Liquefied Petroleum Gas (LPG) is not readily available, has witnessed a constant increase in its price for the past couple of weeks. The price of kerosene is expected to come down by Rs0.61 per litre from Monday, which will bring its price down from Rs103.87 to Rs 103.26 per litre. Consumers had faced a Rs1.92 per litre price hike last Sunday last due to a fluctuation in global oil prices.

Light Diesel Oil (LDO), used mainly for industrial purposes, may witness a nominal decline in prices to the tune of Rs0.25 per litre, which will bring the price down from the current Rs97.93 per litre to Rs97.68 per litre.

Jet fuels JP-1, JP-4 and JP-8 may also see prices decline by Rs0.62, Rs0.58 and Rs0.63 – reaching Rs92.46, Rs84.36 and Rs92.14 per litre respectively

Finally, the price of compressed natural gas (CNG) may decline to maintain it at 60% parity with petrol prices. In Region I (Balochistan, Khyber-Pakhtunkhwa), the price of CNG may come down from Rs94.66 to Rs 92.54 per kilogramme (kg) – slashed by Rs2.12 per kg – while in Region II (Sindh, Punjab) prices may decline by Rs1.94 per kg from Rs86.48 to Rs84.54 per kg.

Published in The Express Tribune, October 21^st, 2012.