Fuel prices change to be implemented from March 1

Price of petrol to go down by Rs2.72.

ISLAMABAD: The consumers are likely to face cut in prices of petroleum products by Rs2.72 per litre effective March 1, 2014.

However, consumers may face hike in price of High Speed Diesel (HSD) by Rs1.07 per litre which is mainly used in agriculture and transport sectors.

The government had kept prices of major petroleum products unchanged for February, contrary to the recommendation for price reduction given by the industry regulator and depriving the consumers of a significant relief.

The government had increased the petroleum levy in order to absorb the impact of reduction in oil prices.

The consumers are likely to face cut in price of petrol by Rs2.72, high octane blending component (HOBC) by Rs1.30 and kerosene oil by Rs0.48 per litre from the month of March. However, the prices of high-speed diesel (HSD) and light diesel oil (LDO) may go up by Rs1.07 and Rs0.30 per litre, respectively.

In a summary moved to the petroleum and finance ministries, Oil and Gas Regulatory Authority (Ogra) recommended to absorb the impact in price of HSD in petroleum levy to provide relief to the consumers. Official said that the finance ministry would oppose any adjustment in petroleum as it may lose revenue.

Government will notify new prices today (Friday) after approval of prime minister.

The price of petrol may come down from Rs112.76 to Rs110.04 if price is reduced as per recommendation by Rs2.72 per litre.

At present, vehicles are using petrol due to closure of CNG stations, and its demand had increased, an industry source said, adding that oil marketing companies and dealers were making money due to raise in the increased sale of petrol.

The price of HOBC mainly used by luxury cars may be reduced from Rs141.23 to Rs139.93 per litre.

The price of HSD may go up from the current price of Rs116.75 to Rs117.82 per litre and LDO from Rs100.22 to Rs100.52 per litre.

LDO is mainly used for industrial purposes. The price of kerosene oil, which is mainly used in remote areas where LPG is not available, may be slashed from Rs106.76 to Rs106.28 per litre.