Up to Rs7.68 per litre raise in oil prices likely

ABDUL RASHEED AZAD

ISLAMABAD: The petroleum products prices are expected to increase by up to Rs7.68 per litre from April 1, as the crude oil prices in the global market have crossed $ 123 per barrel.

According to sources in the Ministry of Petroleum and Natural Resources price of petrol is expected to surge by Rs7.69 per litre, High-Octane (HOBC) by Rs7.45, Light Speed Diesel (LDO) by Rs2.69 and Kerosene Oil (KO) may go up by Rs3.56.

Last month the government announced a subsidy worth Rs2.82 on High Speed Diesel (HSD), but this time HSD prices are also likely to go up by Rs3.65 per litre.

On March 1, the government notified an increase in petroleum products’ prices up to Rs8.67 per liter, while up to Rs1.77 per kg in CNG price with immediate effect.

Ogra had notified increase in CNG price by Rs1.77 per kg in Zone I consisting of Khyber-Pakhtunkhwa (KPK), Potohar, and Balochistan, while by Rs0.90 per kg in Zone-II, which consists of parts of thePunjaband entire Sindh province.

Currently different POL products are being sold at following prices: Petrol at Rs97.66 per litre, Kerosene Oil at Rs96.40 per litre HOBC at Rs126.87 per litre and Light Speed diesel at Rs93.31 per litre.

If the Oil and Gas regulatory Authority notify the above-mentioned increase in POL products’ price on April 1, petrol would be sold at Rs105.35 per litre, Light Speed Diesel at Rs96 per litre, HOBC at Rs134.32 per litre and Kerosene Oil at Rs99.96 per litre.

The expected increase in the oil prices would result in hike in prices of essential food items, which last month also registered a significant increase due to hike in transportation cost.

The government in June 2011 has already deregulated prices of many petroleum products including motor spirit (petrol), HOBC, LDO, jet fuels JP-1, JP-4 and JP-8.

After the deregulation of oil prices, the oil refineries and oil marketing companies are announce ex-refinery and ex-depot prices on a monthly basis keeping in view the import prices.

However, in a controlled mechanism, the government notifies prices after fixing inland freight equalization margin and petroleum levy, which come under its domain.