Pakistan

Global increase: Petrol price hiked by Rs2.5 per litre

Rates of kerosene oil, HOBC, Light Diesel Oil unchanged

Zafar Bhutta November 01, 2015

PHOTO: AFP

ISLAMABAD:

Partially adjusting the impact of rising global oil prices in taxes for November, the government on Saturday announced a hike in the prices of petrol and High Speed Diesel (HSD) but kept the rates of kerosene oil, High Octane Blending Component (HOBC) and Light Diesel Oil (LDO) unchanged.

Interestingly, the Oil and Gas Regulatory Authority (Ogra) had also recommended an increase of Rs5.73 per litre in the price of HOBC, a fuel used in luxury cars, but the government did not grant the hike.

Price of petrol likely to rise by 7%

In a summary moved to petroleum and finance ministries on Thursday, Ogra recommended petrol price go up by Rs5.28 per litre, HSD by Rs3.34 per litre, HOBC by Rs5.73 per litre, kerosene oil by Rs3.89 per litre and the LDO by Rs2.70 per litre. The revision was in line with variation in global oil prices and depreciation of the rupee against the dollar.

HSD, widely used in transport and agriculture sectors, will now cost Rs83.79 per litre against the existing price of Rs82.04 per litre. The increase will have an impact on the farmer community and transport sectors, causing inflation to spiral.

The price of petrol, which is used in common vehicles, has been increased by Rs2.50 per litre from Rs73.76 to Rs76.26 per litre. With a reduction in the price and unavailability of CNG consumption of petrol has gone up.

Petrol prices remain unchanged

Currently, the government is providing LNG to CNG retailers but the supply has been erratic. Kerosene oil is used as kitchen fuel in the country’s remote areas where LPG is not available. The prices of kerosene oil, HOBC and LDO will remain unchanged at Rs57.11, Rs79.79 and Rs53.59 per litre, respectively.

The government estimated to collect Rs31 billion in Sales Tax on all petroleum products in October. Additionally, it expected to collect Rs12 billion on account of the Petroleum Levy on all petroleum products during the month. However, the government is expected to face a revenue loss of Rs3 billion in November for absorbing the impact of the hike in global oil prices by adjusting taxes.

Published in The Express Tribune, November 1^st, 2015.

COMMENTS (2)

Pakistan | 9 years ago | Reply Nawaz Sharif has spared increase of high octane fuel price since it is used only by all Parliamentarians in luxury vehicles and this would have been a burden on himself and his kind.People must donate to maintain a corrupt Parliament and their branches in Lahore, Karachi and Balochistan.

HRS Global | 9 years ago | Reply PSO DMD Finance should be questioned on his illegal appointment as DMD without any proper process by PSO HR.

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