Global fluctuation: Price of petrol likely to go down

Cost of other oil products are expected to increase according to an Ogra summary.

ISLAMABAD:

Consumers are likely to get some relief in petrol prices next month following fluctuation in global oil prices.

According to a summary moved by the Oil and Gas Regulatory Authority (Ogra) before the Ministries of Petroleum and Finance on Wednesday, the price of petrol may be slashed by as much as Rs2.48 per litre from November 1. However, the prices of other petroleum products – such as high speed diesel (HSD) and light diesel oil (LDO) – will go up if the summary is approved.

The government will notify the new prices today (Thursday) after getting the approval of the prime minister.



If approved, the new price of petrol will be Rs110.77 per litre, as opposed to the current Rs113.25 per litre. Meanwhile, the price of HSD – which is widely used in heavy transport vehicles – will be increased by Rs0.18 per litre, taking it to Rs117.13 per litre from the current Rs116.95. The cost of LDO, likewise, will go up by Rs0.64, taking it to Rs101.88 from the current Rs101.24 per litre. The price of high-octane blending component – used in luxury vehicles – will go down by Rs2.67, while the price of kerosene will rise by Rs0.57 per litre.

The government had increased the cost of petroleum product by as much as 4.2% for the month of October. As such, some relief for petroleum consumers had been expected.

Official sources said Ogra had recommended against passing the increase in HSD, LDO and kerosene prices onto consumers as well and suggested they be adjusted in the petroleum levy. It was expected, however, that the finance ministry would oppose the proposal since it did not want to lose revenue, they added.

Published in The Express Tribune, October 31^st, 2013.