The fluctuation in global oil prices has meant that oil prices in the country are likely to go up by Rs4.99 per litre effective August 1.
However, in a summary moved by the Oil and Gas Regulatory Authority (Ogra) to the petroleum and finance ministries on Tuesday, it proposed not to pass on the price rise by adjusting the rate of Petroleum Levy on petroleum products in order to provide relief to consumers before Eid.
Sources said the finance ministry may oppose Ogra’s proposal as it wants greater revenue collection. However, the final decision will be taken by Prime Minister Nawaz Sharif. Sources maintained that the government could still keep oil prices unchanged on account of Eid being around the corner.
The Pakistan Muslim League-Nawaz government will notify the new prices today (Wednesday) after the approval of Prime Minister Nawaz.
Following the hike in global oil prices, the price of petrol may rise by Rs2.73 per litre, high speed diesel (HSD) Rs4.50 per litre, light diesel oil (LDO) Rs3.95 per litre and kerosene oil Rs4.99 per litre.
According to a summary, the consumers of HSD, which is used mostly in the transport and agriculture sectors, may face a hike of Rs4.50, which would bring the price up to Rs111.26 per litre from the existing Rs106.76.
Petrol prices may go up by Rs2.73 per litre from the existing Rs101.77 to Rs 104.5.
Kerosene oil, used for cooking purposes in remote areas where liquefied petroleum gas is not readily available, may witness a hike of Rs4.99 per litre, bringing its price up from Rs96.29 to Rs101.28.
Similarly LDO, mainly used for industrial purposes, may witness an increase to the tune of Rs3.95 per litre, meaning the price will go up from Rs92.17 to Rs96.12.
The price of jet fuels may also witness a rise.
The price of JP-1 may go up by Rs4.98, JP-4 by Rs4.48 and JP-8 by Rs4.98, bringing the prices to Rs89.88, Rs82.34 and Rs89.55 respectively.
Published in The Express Tribune, July 31st, 2013.
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