Up to Rs8 hike in oil prices notified

Attention: open in a new window. PDFPrintE-mail

ISLAMABAD: The government on Friday increased petroleum, oil and lubricants (POL) product prices ranging between Rs 5.54 and 8.18 per litre, effective from today (Saturday).

According to a notification issued here, the HOBC price increased by 8.18 per litre to Rs 133.19 per litre, petrol by Rs 7.77 to Rs 104.55 per litre, kerosene oil by Rs 5.86 to Rs 102.21, High Speed Diesel (HSD) by Rs 5.94 to Rs 112.13 per litre and Light Diesel Oil (LDO) by Rs 5.54 per litre to Rs 98.84 per litre.

Prime Ministerís Advisor on Petroleum and Natural Resources Dr Asim Hussain suggested the government to pass on only 50 percent of the international crude oil impact on the consumers by slashing 50 percent petroleum levy. But, the government rejected his suggestion and passed on the full impact on oil consumers.

The government is collecting petroleum levy on petrol at the rate of Rs 8.86 per litre, Rs 11.84 per litre on HOBC, Rs 4.2 per litre on HSD and Rs 5.15 per litre †on kerosene oil.

According to Petroleum Ministry official as a result of POL price increase, the governmentís tax collection on petroleum products will also increase as General Sales Tax is being collected from consumers.

The government on August 22 announced an increase in the price of petrol from Rs 93.57 per litre to Rs 96.78 per litre, HOBC from Rs 120.16 per litre to Rs 125.01 per litre, kerosene oil from Rs 92.83 per litre to Rs 96.35 per litre, HSD from Rs 101.79 per litre to Rs 106.19 per litre, LDO from Rs 90.11 per litre to Rs 93.30 per litre.

The government has also decided to increase the price of Compressed Natural Gas (CNG) by Rs 7.11 per kg in region-I consisting of Potohar region, Khyber-Pakhtunkhawa and Balochistan provinces and by Rs 6.50 per kg in region-II consisting of larger parts of Punjab and Sindh.

On August 23 the rate of CNG for region-I consisting of Potohar, Balochistan and Khyber-Pakhtunkhawa, was raised by Rs 3.21 per kg, setting the new price up Rs 88.61/kg. The CNG price in region-II consists of Punjab and Sindh increased by Rs 2.68 per kg bringing it up to Rs 80.94/kg.

This is the first time in the history of the country that price of kerosene oil has crossed Rs 100 per litre mark. The massive increase in the POL prices would fuel prices of daily use items especially perishable items as well as public transport fares.

Ghiyas Abdullah Paracha, Chairman All Pakistan CNG Association (APCNGA) while rejecting the government decision to hike CNG tariff said CNG industry was paying a Gas Infrastructure Development Cess (GIDC) of Rs 300 per MMBTU and highest gas tariff of Rs 648 per MMBTU as compared to other sectors of economy.

He said if the government is increasing CNG tariff it will have to increase gas price for CNG sector, which is not possible until Ogra public hearing and if still government is increasing CNG price it is illegal.

Courtesy: †B Recorder

Forex open Market rates & comments Archive

Login Form