Temporary relief: PM halts hike in fuel prices

Govt would bear a subsidy of Rs2.8b.

ISLAMABAD:

Prime Minister Nawaz Sharif rejected the summary presented by Oil and Gas Regulatory Authority (Ogra), suggesting an increase in oil prices, and asked the authority to carry the previous prices.

A senior official said that government would bear a subsidy of Rs2.8 billion in December by absorbing impact of increase in petroleum levy. Consumers were likely to face an increase up to Rs1.34 per litre in oil prices from the start of December, following fluctuations in the global oil market and depreciation of Pakistani rupee.

According to a summary sent by Ogra to the petroleum and finance ministries, a hike of Rs0.85 per litre in the price of petrol along with increases in prices of other petroleum products was recommended. These include high speed diesel (HSD), kerosene oil, light diesel oil (LDO) and high octane blending component (HOBC).

Officials said Ogra had recommended that the government should not pass on the increase in prices of HSD, kerosene oil and LDO to the consumers by absorbing the rise in the rate of petroleum levy. The price of petrol, which is used as an alternative to compressed natural gas (CNG) will be maintained at Rs113.61 per litre.



The price of HSD, which is mostly used in cargo and passenger vehicles as well as in agriculture, was recommended to increase by Rs1.34 to Rs118.09 per litre from Rs116.75. After premier’s decision, it will remain as it is. The price of kerosene oil, consumed for cooking purposes in far-off areas, was to rise by Rs1.18 to Rs109.18 per litre compared to Rs108 at present — it will also remain the same.

Consumers of LDO will also be paying the current price of Rs101.24 per litre. It was suggested to increase by Rs0.82 to Rs102.06 per litre. The price of HOBC used in luxury cars, was to increase by Rs5.22 to Rs146.45 per litre from existing Rs141.23.

The current prices of all petroleum products will be maintained for month of December following the decision of prime minister.

Published in The Express Tribune, November 30^th, 2013.