Sunday, 10 June 2012 10:12
ABDUL RASHEED AZAD
ISLAMABAD: Petroleum Oil and Lubricant (POL) prices are likely to come down by as much as Rs5 to Rs10 per litre from June 16, it is learnt.
Sources privy to the development said that in line with the reduction in Arab Gulf crude prices, the Oil and Gas Regulatory Authority (Ogra) has calculated a reduction of Rs10 per litre in the rates of High Octane Blend Component (HOBC), Rs9 per litre in petrol, Rs5 per litre in High-Speed Diesel (HSD), Rs5 per litre in Light Diesel Oil (LDO) and Rs5 per litre in Kerosene Oil.
At present, Arab Gulf crude price has reached prices lowest in six years at $103 per barrel. Oil was being traded at $111 per barrel last month, an OGRA official said.
Currently, various POL products are being sold at the following prices: HOBC at Rs125.07 per litre, petrol at Rs99.97 per litre, HSD at Rs105.77 per litre, LDO at Rs91.59 per litre and kerosene at Rs94.05 per litre.
If the government approves Ogra recommendations, these would be sold at the following rates: HOBC at Rs115.81 per litre, petrol at Rs91.97 per litre, HSD at Rs100.77 per litre, LDO at Rs86.59 per litre and kerosene at Rs89.05 per litre.
The government is collecting petroleum levy on petrol at the rate of Rs8.86 per litre, Rs11.84 per litre on hi-octane, Rs4.2 per litre on HSD and Rs5.15 per litre on kerosene oil.
According to officials on June 1, the government did not pass on the full benefit of the reduction in international crude oil prices to the consumers. It increased the Petroleum Levy on various POL products to an optimum level, but this time around, it is expected that the government would pass on the full benefit to consumers.