Petrol price brought down by Rs2.73 per litre

Prices of other petroleum products remain unchanged.

ISLAMABAD: The government on Friday cut the price of petrol by Rs2.73 per litre, effective from March 1 (today). However, the existing prices of other petroleum products like High Speed Diesel (HSD), kerosene oil and High Octane Blending Component (HOBC) will remain unchanged.

According to a statement issued by the finance ministry, Ogra determined that the prices of HOBC be increased by Rs1.31, kerosene by Rs0.49, High Speed Diesel by Rs1.08 and Light Diesel Oil by Rs0.31. It also decided to decrease the price of petrol by Rs.2.73.

Now, the price of petrol has been reduced to Rs110.03 from Rs112.76 per litre. The prices of HSD has been maintained at Rs116.75, HOBC Rs141.23, kerosene oil Rs106.76 and LDO Rs100.22 per litre.

According to an official, the demand for petrol has spiked following gas load-shedding at CNG stations, especially in Punjab. HSD is mainly used in the agriculture and transport sectors and the impact in its change in price has been absorbed by adjusting the petroleum levy to provide relief to consumers.

“The government’s decision to maintain the price of HSD would help control inflation as it is used in large scale quantities in these sectors,” an official said. Kerosene oil is used in remote areas where LPG is not available for cooking purposes and its price has also been maintained.

Finance Minister Ishaq Dar met Prime Minister Nawaz Sharif on Friday to discuss the prices of petroleum products for the month of March, in light of Ogra’s recommendations. The PM was briefed that if petroleum prices are maintained at the level of February 1, 2014, excepting the petrol price, the subsidy to be picked up by the finance ministry will be less than a billion rupees for the month of March.

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