ISLAMABAD  - Inflation-hit masses would find a New Year gift with the start of January 2014 as Prime Minister Mian Muhammad Nawaz Sharif has rejected the summary for price-hike in petroleum products (POL) and ordered to maintain the prices at current level.
With this decision of reprieve from the PML-N government to the over burdened masses, Finance Ministry would provide Rs 5.36 billion subsidy to keep the prices of POL products unchanged during the first month of a New Year. The regulatory authority on Monday despatched a summary pertaining to the prices of Petroleum Products (POL) to the Ministries of Petroleum and Finance.
The Oil and Gas Regulatory Authority (Ogra) recommended to the government not to pass on the increase in oil prices by adjusting the rate of the Petroleum Levy (PL) on petroleum products to provide relief to the consumers. The Ogra in its summary worked out upto Rs 3.60 per litre hike in the prices of petroleum products for the running month in line with upward trend of prices in the international market and also in accordance with determination of oil marketing companies.
The regulator proposed hike in the per litre price of petrol by Rs 2.91, High Speed Diesel (HSD), which is used mostly in the transport and agriculture sectors, by Rs 2.63, Light Diesel Oil (LDO), which is used mainly for industrial purposes, by Rs 1.80, High Octane Blended Component (HOBC), used mainly in luxury cars, by Rs 3.60 and kerosene oil, which is used for cooking and lightening purposes in remote and hilly areas where Liquefied Petroleum Gas (LPG) is not readily available, by Rs 1.38 from 1st January.
With effect to the decision of the Prime Minister pertaining to no change in the prices of POL products during January 2014, per litre price of petroleum products would remain at the same level. Petrol to stand at Rs 112.76, HSD at Rs 116.75, LDO at Rs 101.24, Kerosene oil at Rs 108 and HOBC at Rs 141.23 in the open market during on going month.
Meanwhile, prices of Liquefied Petroleum Gas (LPG) has been reduced by Rs 20 per kilogram with immediate effect.
After a decrease of Rs 20 per kilogram the household LPG cylinder would be available at Rs 225, while the commercial unit would stand at Rs 905, with both prices being immediately applicable.
Chairman LPG Distributors Association in a statement further told that prices in Karachi would decrease by Rs 100 per kilogram, while it would be lowered by Rs 125 in Northern Areas. The new prices would be Rs 1150 in Sindh including Karachi, and Rs 1400 in Northern Areas.