Fluctuation in global market: Petroleum prices rise by Rs4.9 per litre

Diesel to sell at Rs109.76 per litre after Rs3 hike; petrol price up by Rs2.7 per litre.

ISLAMABAD:

In line with the fluctuation in the international market, the government has increased petroleum prices by Rs4.99 per litre effective Thursday (today).

Interestingly, the Oil and Gas Regulatory Authority (Ogra) recommended to the ministries of petroleum and finance on Tuesday not to pass on the increase in petroleum prices and instead adjust the rate of Petroleum Levy (PL) to provide relief to the consumers.

However, the finance ministry opposed the Ogra proposal because it wanted to collect more revenue, sources told The Express Tribune.

According to the summary, the price of High Speed Diesel (HSD) – which is used mostly in the transport and agriculture sectors – was proposed by Ogra to increase by Rs4.50 per litre. However, the government passed on a partial increase of Rs3 by adjusting some of the increase in Petroleum Levy. Now, the new price of HSD is Rs109.76 per litre. The government subsidised it by Rs1.50 per litre.

Similarly, the petrol price has gone up by Rs2.73 per litre from Rs101.77 to Rs104.50 per litre. Kerosene oil has witnessed an increase of Rs4.99 per litre, taking its price from Rs96.29 to Rs101.28 per litre. Kerosene oil is used as kitchen fuel in remote areas where Liquefied Petroleum Gas (LPG) is not readily available.

The price of Light Diesel Oil (LDO), mainly used for industrial purposes, has been increased by Rs3.95 per litre, from Rs92.17 to Rs96.12 per litre. The price of High Octane Blending Component (HOBC) used in luxury vehicles, has been increased by Rs5.69 per litre to Rs132.44 from Rs126.75 per litre.

Published in The Express Tribune, August 1^st, 2013.