ISLAMABAD - The declining trend of POL prices in the international market is expected to reflect in local prices of petroleum products to the tune of up to Rs 4 per litre for the next month of May.
Sources well aware of the development told on Monday that in accordance with recent estimation and particularly after a long time, the downward trend of the price of crude oil, a reduction up to Rs 4 per liter is likely in the prices of petroleum, oil and lubricants (POL) products for the upcoming month in the country. They informed that price of petrol is expected to decline by Rs 1.25 per litre next month and that of high octane blended component (HOBC) by up to Rs 3.90 per liter while the price of high speed diesel with a nominal decrease (20 paisa per litre) is likely to remain with the same tune because of a reduction in prices in the Arabian Gulf market. Similarly, the price of Light Diesel Oil (LDO) will also witness a decrease up to Rs1.75/litre and the future price of Kerosene oil for next month will also go down by Rs 1.70 per litre, sources said, adding, that the future prices of compressed natural gas (CNG) for next month will also go down by Rs2 per kilogramme in the country.
“Final estimation will be firmed up later this month (27th April) after the inclusion of Inland Freight Equalisation Margin (IFEM)”, sources said, adding, that margins of dealers and marketing companies would also be included in the final decision pertaining the prices of POL products by Oil and Gas Regulatory Authority (Ogra). Further, there is a strong possibility government may reduce petroleum levy to materialise estimated decrease in prices of products in a bid to get public support and well wishes by giving them good news that would ultimately reduce their woes and worries ahead of general election in the country.
However, sources in the National Electric Power Regulatory Authority (Nepra) informed a nervous breaking information for the over burdened power consumers already facing sky high rates of per unit of electricity in the country that the Central Power Purchasing Agency (CPPA) in its plea has sought Nepra to hike power tariffs by Rs 1.88 per unit under fuel adjustment for the month of March. They further informed that Nepra would hear CPPA application on 25th April, adding, that the electricity amounting 6.22 billion units were sold to distributing companies during March while the fuel cost of the electricity generated in March was Rs 9.64 per unit. The reference sale cost was set at Rs.7.76 per unit; while 2.7 percent of electricity was wasted to transmission losses.
It is worth mentioning here that since the government deregulated prices of petroleum products on June 1 and allowed refineries and oil marketing companies (OMCs) to fix their ex-refinery and ex-depot prices on a monthly basis, keeping in view import parity price. But prices are being notified by Ogra so far. However, government now determines amount of petroleum levy required to be recovered through petroleum product pricing and forwards it to Ogra for onward communication to marketing companies.