PM keeps oil prices unchanged

ISLAMABAD: Hours before the clock struck 12am, Prime Minister Nawaz Sharif wrapped his New Year’s gift for his compatriots in the shape of unchanged oil prices.

On Tuesday the prime minister approved a summary whereby consumers will be provided relief from January 1st 2014. Consumers were expected to face a hike of up to Rs2.91 per litre in petrol prices effective from January 1, following fluctuations in global rates.

But in a summary moved by the Oil and Gas Regulatory Authority (Ogra) to petroleum and finance ministries on Monday, Ogra had proposed not to pass on the increase in oil prices by adjusting the rate of petroleum levy on petroleum products to provide relief to the consumers.

“Government will bear a subsidy of Rs5.38 billion in January in order to absorb the hike in petroleum levy and to maintain the existing rates,” officials said. According to a summary, consumers of High Speed Diesel, were likely to face an increase of Rs2.63 per litre, bringing its price to Rs119.38. However, after Tuesday’s decision, the price of HSD will remain at Rs116.75 per litre.

Published in The Express Tribune, January 1^st, 2014.