Much-awaited: Petrol prices set to fall from March 1

Govt likely to issue notification today of new prices after PM’s approval .

ISLAMABAD:

Consumers are likely to face a cut in prices of petroleum products by Rs2.72 per litre effective from March 1, 2014.

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

Contrary to the recommendation for price reduction given by the industry regulator, the government had kept prices of major petroleum products unchanged for February, 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.

Consumers are likely to face a cut in the price of petrol by Rs2.72; High Octane Blending Component (HOBC) by Rs1.30; and kerosene oil by Rs0.48 per litre from March. However, the prices of HSD and LDO may go up by Rs1.07 and Rs0.30 per litre respectively.

In a summary moved to the petroleum and finance ministries, the Oil and Gas Regulatory Authority recommended that the impact in price of HSD in the petroleum levy be absorbed to provide relief to consumers.

An official said that the finance ministry would oppose any adjustment in petroleum levy as it may lose revenue.

The government will issue a notification of new prices today (Friday) after the approval of the prime minister.

The price of petrol may come down from Rs112.76 to Rs110.04 if the 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 has increased, an industry source said, adding that oil marketing companies and dealers were making enough money due to a raise in its sale.

Published in The Express Tribune, February 28^th, 2014.