The petroleum ministry approved a summary, sent by the Oil and Gas Regulatory Authority (Ogra) and oil marketing companies (OMCs), proposing Rs6 per litre cut in petrol price, 14 paisa in diesel, 40paisa in kerosene oil and 95 paisa reduction in the price of light diesel oil.
This week the petrol will be available at Rs102.45 per litre, compared to its previous price of Rs108.45, kerosene oil price will be down to Rs101.23 from previous Rs101.63, High Speed Diesel (HSD) to Rs113.16 from Rs113. 31 and Light Diesel Oil (LDO) to Rs96.22 from Rs99.17.
Following the imposition of a new price mechanism for high-octane blended component (HOBC) under which its price will vary in various big cities of the country, the price of HOBC would be up by Rs0.36/litre in Karachi but it would be cheaper by Rs1.50 in Lahore and Multan, and by Rs2.36 in various other cities of the country.
Under this new mechanism decided by the petroleum ministry the imposed charges of inland freight equalisation margin on the HOBC has been revoked, and the price of this product, which is used in luxury vehicles, would be determined by the OMCs in accordance to their own cost while keeping in mind the transportation costs.
The Ogra in its summary also suggested for decrease in the per kilogram prices of Compressed Natural Gas (CNG) in line with the set mechanism under which CNG price should stand at 60 per cent of petrol price.
CNG price in Region-I, comprising Balochistan and Khyber-Pakhtunkhwa and Potohar Region (Rawalpindi, Islamabad and Gujar Khan) after a Rs5.49/kg cut will be reduced to Rs93.79/kg from Rs99.28; and in Region-II, covering Sindh and Punjab, the price will be cut to Rs85.68/kg from Rs90.70 after a decrease of Rs5.02.
Since no decrease was needed this time in the share of imposed Petroleum Levy (PL) on petroleum products therefore the petroleum ministry did not seek the nod of finance ministry on this summary, sources said.
On the other hand, instead of waiting for the Ogra notification regarding future prices of LPG, the mighty Liquefied Petroleum Gas (LPG) marketing companies have jacked up the prices of the commodity by Rs5 per kilogram at their own.
Sources said that Ogra was scheduled to give final decision on October 3 but, following a price surge in international market, the influential marketing companies have increased the prices of the commodity by Rs60 per domestic cylinder and Rs240 per commercial cylinder. This artificial hike in LPG prices will definitely add to the woes of the inflation-hit consumers.
However, the sources said that Ogra is also likely to raise the prices of LPG under the designed formula as the price of commodity in international market has increased by $40 to $983 per ton.
They said that after the artificial hike, the commodity was being sold at Rs115 to 120 per KG in Karachi and Hyderabad; Rs125 to 130 in Lahore, Gujranwala, Faisalabad, Jehlum and Mirpur (AJK); Rs135 to 140 in Multan, Dera Ghazi Khan, Dera Ismail Khan, Peshawar, Mansehra, Rahim Yar Khan and Bahawalnagar; and Rs145 to 150 per kg to the consumers in the open market in Islamabad, Rawalpindi, Murree, Muzaffarabad and Swat.
POL prices drop for a week