OMCs may cut POL prices

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ISLAMABAD - Viewing the downward trend in the international oil market, country’s Oil Marketing Companies (OMCs) are likely to slash the prices of POL up to Rs4/litre with the start of upcoming month of May, sources said on Sunday.

Good news for consumers of petroleum products (POL) already facing sky-high prices for a long time, a handsome cut in per litre prices of all POL products is expected by 1st May as crude oil price has been decreased to $5/barrel in the global oil market.  The sources also said that as per estimation made so far, the price of petrol is likely to be cheaper by Rs4/litre, high-speed diesel (HSD) Rs3/litre, high octane blended component (HOBC) Rs7.10/litre, kerosene oil Rs3.25/litre and per litre price of light diesel oil (LDO is also likely to be reduced by Rs4.10/litre with the start of next month. However, if government decides to jack up the share of petroleum levy (PL) already imposed on petroleum products (POL) then the innocent consumers would not get proper relief, sources added.

Since petrol is an alternate to ‘scarce’ compress natural gas (CNG), consumers in some parts of the country, especially Punjab, have become dependent on petrol. The reduction in petrol prices will provide relief to motorists who are suffering due to CNG suspensions.

Motorists could be in for some good news as the price of petrol is expected to decrease next month, while decrease in the price of diesel, which is mostly used in the transport and agriculture sector, will impact significantly as the reduction may provide a relief to the agriculture sector and reduction in inflation across the country. Similarly, a handsome cut in the price of kerosene, which is used for cooking in remote areas where liquefied petroleum gas (LPG) is not available, will ultimately provide a sigh of relief.
It is to note here that the Oil and Gas Regulatory Authority (OGRA) after consulting OMCs on future prices of POL products will forward a summary recommending next month prices to the Ministry of Petroleum & Natural Resources on April 28 while the petroleum ministry will dispatched the summary to the Finance Ministry to get its approval on the determined prices. The finance ministry would resend the POL prices summary to the petroleum ministry on April 29 and the ministry of petroleum is scheduled to announce the next month prices at the end of this month.

“Since the masses have experienced sharp increase in fuel, electricity and food prices for a long time, so the expected petrol price decrease will reduce their miseries and likely cut in fuel prices is due to weaker international oil prices, an official at petroleum ministry said, adding, “other living costs could drop slightly as well, if the rend remains stable.” It is also learnt that if the share of the petroleum levy on petroleum oil and lubricants (POL) products was maintained at current level then an attractive cut would bring improvements in the budget of salaried and common people as well.

The government during the ongoing month of April was set to receive Rs24 billion in revenues on account of petroleum levy and GST while despite withdrawal in oil product prices, the government, in accordance to sources, had got Rs22 billion on account of petroleum levy and GST in March.


Courtesy: The Nation

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