Bid to avoid protest by masses: Ministry suggests absorption of rising oil prices in PL

In a bid to avoid increase in the prices of petroleum products, the Ministry of Petroleum and Natural Resources has proposed to Prime Minister Yousuf Raza Gilani to adjust the rising trend of oil prices, ranging between Rs 2 and Rs 6 per litre in Petroleum Levy (PL) collection from January 1, 2011, warning that people would come out on the roads against any move to hike the prices.
The Prime Minister has been informed that any surge in oil prices would agitate the masses, resulting in inflationary pressure on the consumers. The Petroleum Ministry has further said that other available option was to increase oil prices by Rs 2 to Rs 6 per litre in line with hike in global oil prices, if the government was not ready to keep the oil prices unchanged.
The Prime Minister will give his verdict on the proposals of the Petroleum Ministry, either to keep the oil prices unchanged, or pass on the rising impact to the consumers, in line with hike in global oil prices effective from January 1, 2011. After decision of Prime Minister, the Oil and Gas Regulatory Authority (Ogra) will notify prices on Friday.
The Prime Minister had also intervened last month and stopped Ogra from raising oil prices, following reports of intelligence agencies which said that "people who are already under pressure of inflation would throng streets to register protest against any increase in oil prices". The government had kept oil prices unchanged by adjusting rising impact of oil prices in PL collection to secure people from inflationary pressure.
The prices of petroleum products in the international oil market during the current month of December, 2010 showed rising trend as compared to the last month of November, 2010.
The average price of kerosene remained 100.35 $/bbl in the current month as compared to 95.61 $/bbl in the month of November. Similarly, rising trend was also observed in the prices of high speed diesel (HSD) and petrol. In November, the average international price of HSD was 94.19 $/bbl whereas during ongoing month it had been raised to 99.17 $/bbl.
In case of petrol the average price for November month was 90.43 $/bbl whereas in the current month it has increased to 98.13 $/bbl. The exchange rate has also increased as compared to last month of November. During the current month of December, the average exchange rate remained at Rs 85.86790 per $ as compared to Rs 85.66884 in November 2010.