Ramazan 'gift': Govt leaves petroleum prices unchanged for July
Prime minister rejects summary for upward revision of prices of petroleum products, gives subsidy of Rs500 million.
ISLAMABAD:
In what could be termed a welcome Ramazan “gift,” the government announced on Monday that it was keeping oil prices for the month of July unchanged.
According to a statement, Prime Minister Nawaz Sharif rejected the Oil and Gas Regulatory Authority's (OGRA) summary for upward revision of petroleum prices for the month of July, 2014.
In order to keep petrol prices unchanged for the month, the government will have to provide a subsidy of half a billion rupees.
“It may be noted that last time subsidy on petroleum prices was Rs1.78 billion,” a statement from the Prime Minister house read.
According to summary moved to finance and petroleum ministries by Ogra, it was proposed that the price of petrol should be revised upwards by Rs0.84 per litre, High Octane Blending Component (HOBC) by Rs3.63 per litre, Kerosene oil Rs0.30 per litre, High Speed Diesel (HSD) Rs0.27 per litre and Light Diesel Oil (LDO) Rs0.22 per litre.
The revision in prices was proposed following hike in global oil prices due to bad condition in Iraq where insurgents had occupied oil field.
Nawaz had also halted any increase in oil prices in June to provide relief to the consumers.
Officials said that finance ministry had tried its best to convince the prime minister that proposed hike in oil prices should be passed on to the consumers in a bid to more collection of revenue. However, prime minister rejected demand of finance ministry and directed to keep oil prices unchanged. Officials said that proposed increase in oil prices had been absorbed in the Petroleum Levy (PL)
In what could be termed a welcome Ramazan “gift,” the government announced on Monday that it was keeping oil prices for the month of July unchanged.
According to a statement, Prime Minister Nawaz Sharif rejected the Oil and Gas Regulatory Authority's (OGRA) summary for upward revision of petroleum prices for the month of July, 2014.
In order to keep petrol prices unchanged for the month, the government will have to provide a subsidy of half a billion rupees.
“It may be noted that last time subsidy on petroleum prices was Rs1.78 billion,” a statement from the Prime Minister house read.
According to summary moved to finance and petroleum ministries by Ogra, it was proposed that the price of petrol should be revised upwards by Rs0.84 per litre, High Octane Blending Component (HOBC) by Rs3.63 per litre, Kerosene oil Rs0.30 per litre, High Speed Diesel (HSD) Rs0.27 per litre and Light Diesel Oil (LDO) Rs0.22 per litre.
The revision in prices was proposed following hike in global oil prices due to bad condition in Iraq where insurgents had occupied oil field.
Nawaz had also halted any increase in oil prices in June to provide relief to the consumers.
Officials said that finance ministry had tried its best to convince the prime minister that proposed hike in oil prices should be passed on to the consumers in a bid to more collection of revenue. However, prime minister rejected demand of finance ministry and directed to keep oil prices unchanged. Officials said that proposed increase in oil prices had been absorbed in the Petroleum Levy (PL)
Prices of POL products with effect from July 1, 2014
| Product | Current month’s prices | PM approved price w.e.f. Jun 2014 | |
| MS (Petrol) | Rs107.97 | Rs107.97 | |
| High Speed Diesel | Rs109.34 | Rs109.34 | |
| Light Diesel Oil | Rs94.13 | Rs94.13 | |
| HOBC | Rs134.63 | Rs134.63 | |
| Kerosene | Rs98.07 | Rs97.40 |