The government has increased oil prices by 9.9 percent up to Rs 8.58 per litre, in line with hike in global prices due to unrest in North Africa and the Middle East, effective from today (Tuesday), a day prior to International Monetary Fund team''s talks with Pakistani officials on its suspended programme. Even after this increase, the government will have to bear a subsidy of Rs 5 billion for March 2011.
The government has also increased the rate of Petroleum Levy (PL) with a view to containing the burgeoning fiscal deficit. The prices of petroleum products have been increased as follows: petrol by Rs 7.23 per litre, HOBC Rs 8.58 per litre, High Speed Diesel (HSD) Rs 7.76 per litre, Light Diesel Oil (LDO) Rs 6.60 per litre, kerosene oil Rs 7 per litre, JP-1 local Rs 5.89 per litre, JP-4 Rs 3.34 per litre and JP-8 Rs 5.88 per litre.
The new prices of petroleum products will stand at: Petrol Rs 80.19 per litre, HOBC Rs 95.25 per litre, HSD Rs 86.09 per litre, LDO Rs 73.21 per litre, kero Rs 77.95 per litre, JP-1 (local) Rs 74.37 per litre, JP-4 Rs 68.45 per litre and JP-8 Rs 74.07 per litre.
While addressing a press conference, spokesman Oil and Gas Regulatory Authority (Ogra) Syed Jawad Naseem said that government had raised PL on petroleum products: PL on petrol from Rs 2.20 per litre to Rs 6.25 per litre, HOBC from Rs 4.84 per litre to Rs 9.80 per litre and HSD from Rs 0.55 per litre to Rs 3.75 per litre. Naseem said the price of petrol had increased from $102.62 per barrel to $120 per barrel, kero from $109.60 per barrel to $128.74 per barrel and gas oil from 107.26 per barrel to $125.62 per barrel due to unrest in the Middle East during February 2011.
Import credentials have been excluded from the ex-refinery price as per first phase of Economic Co-ordination Committee (ECC) decision on deregulation of petroleum products. Distributor and dealer margin for MS, HOBC, Kero and LDO have been fixed according to ECC decision. "Despite protest by dealers, no change has been made in their margins," Naseem added.