Full impact of hike passed on to consumers of all petroleum products apart from HSD. PHOTO: FILE
The government on Saturday raised oil prices by up to Rs5.89 per litre following fluctuation in global oil prices.
Effective today (Sunday) onwards, the price of petrol now stands at Rs109.13 per litre, up from Rs104.50 – a Rs4.63 increase.
The price of kerosene – which is used in cooking stoves in remote areas where Liquefied Petroleum Gas (LPG) is not readily available – has been raised by Rs4.71 per litre, bringing it up to Rs105.99 from Rs101.28. The price of light diesel oil (LDO) has been increased by Rs2.31 per litre, bringing it to Rs98.43 from the previous Rs96.12 per litre.
High octane blending component (HOBC), used mainly in luxury vehicles, has witnessed an increase of Rs5.89. It now stands at Rs138.33 per litre.
The government passed on the full impact of the hike to consumers of all petroleum products, except for high speed diesel (HSD). Upon the directions of Prime Minister Nawaz Sharif, the price of HSD witnessed a partial increase of Rs2.50.
The summary moved by Oil and Gas Regulatory Authority (Ogra) to petroleum and finance ministries on Friday suggested the government absorb the hike in oil prices by adjusting the rate of the petroleum levy, instead of passing the impact onto consumers. According to a summary, High Speed Diesel (HSD) consumers would have faced a Rs3.57 per litre hike in prices.
“Now, the government … following the prime minister’s directions … has provided another Rs1.07 per litre subsidy to HSD consumers,” a senior government official said, adding that the total subsidy on HSD now stands at Rs 3.63 per litre.
Following partial increase in price of HSD, the new price now stands at Rs112.26 per litre.
Published in The Express Tribune, September 1st, 2013.
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@Zeeshan: if the oil prices are not in line with the global prices the government High speed diesel is also used in Cars having diesel engine, generatore has to bear the subsidy to keep the prices low.. Petroleum is used in the cars which are owned by affluent people . so why a subsidy to affluent populace? High speed diesel is used in diesel engine cars & generators and should not be subsidized but the govt. might have used the excuse that generators are being used in fields too for irrigation purposes too. HSD should not be subsidized. the news did not indicate in kerosene oil ( used by poor) price increase. But wait for another few price increase which is looming due to the threat of military atack , even if ti is limited , by USA ( to punish Syria for the use of sarin the nerve gas, a chemical weapon, killing over 1400 persons around Damascus) will disturb the oil production as well as transporting activities and the fear in the minds of oil trading corporate / countries will result in oil price escalation. just wait .
Govt should increase the prices of High Octant Blending Component and Light Diesel oil and High speed diesel instead of Kerosene oil and Petroleum .