ISLAMABAD (December 02 2007): The Oil and Gas Regulatory Authority (Ogra) on Saturday notified that the maximum ex-depot sale prices, effective December 2, 2007, of the following products, will remain unchanged: Motor Spirit will be Rs 53.70 per liter, HOBC 64.88; kerosene oil 35.23 and light diesel oil 32.57.
The price determination is carried out by Ogra in accordance with the formula prescribed by the federal government. It requires that the price be based on average Arab Gulf prices for the last fortnight for Naphtha, Diesel, Kerosene and HSFO, to which Inland Freight Equalisation Margin (IFEM) is added, which reflects estimated transportation cost of the products to the 29 depots in the country, for the purpose of price equalisation.
The government levies in relation to Petroleum development levy and sales tax are added, to arrive at the notified prices. The Ogra spokesman said the government is providing a subsidy of Rs 18.49 per liter on Kerosene oil to the common man. A subsidy of Rs 15.47 per liter on light diesel oil is also being given.-PR
Copyright Business Recorder, 2007