Petrol to cost Rs 52.61 per litre, diesel Rs 34.59, kerosene oil Rs 31
By our correspondent
KARACHI: The Oil Companies Advisory Committee (OCAC) and Oil Marketing Companies (OMCs) have increased the prices of petroleum products, including petrol and diesel, by Rs 3.67 and Rs 2.85 per litre, respectively, with effect from Sept 1.
For the past two fortnights, the prices of petroleum products had been kept unchanged. The OMCs - Pakistan State Oil (PSO) and Shell Pakistan Limited (SPL) - have enhanced the price of diesel by Rs 2.85 per litre, or 8.98 per cent, to Rs 34.59 from Rs 31.74 per litre. Last time, the price of diesel remained unchanged.
The price of motor gasoline, commonly called as petrol, was increased by Rs 3.67 per litre to Rs 52.61 from Rs 48.94 per litre. By adding 8 paisa as the petrol pump commission, the petrol will be available at Rs 52.69 per litre.
"During the fortnight (August 15-30), oil prices in the international market reached an all-time high with diesel increasing to $68 per barrel. Naphtha increased over $32 per tonne to $510 per tonne and kerosene increased to $74 per barrel," said Abid Saeed Ibrahim, secretary-general, OCAC, in a statement here on Wednesday. The OCAC held its meeting on Wednesday.
He said the latest prices on Wednesday for diesel have already reached historic levels of $77 per barrel in the Arab Gulf market and kerosene has reached $80 per barrel. The impact of the present increase would be seen in the next fortnight.
The government has since May 2004 already absorbed over Rs65bn by removing all together the Petroleum Development Levy (PDL) and paying out Price Differential claims to the Oil industry on account of stabilising the prices throughout the year and for not passing on the complete impact of the increase in the prices of petroleum products in the international market.
Despite the increase being passed on, the government would be absorbing additional Rs500 million for the current fortnight on account of price differential claims. The OMCs at present continue to subsidise the price of diesel by Rs 3.31 per litre, kerosene by Rs 6.59 and LDO by Rs 4.52 per litre.
At present the balance claim of the oil industry on account of Price Differential claims stands at Rs6.5bn after a payment of Rs3bn, which is due by the end of the week.
The price of High Octane Blending Component (HOBC) that was unchanged at Rs 54.33 per litre was enhanced by Rs 4.07 per litre to Rs 58.46 per litre.
Similarly, kerosene oil that was pleasantly placed at Rs 29.53 per litre was further upgraded to Rs 31 per litre, an increase by Rs 1.47 per litre.
The Light Diesel Oil (LDO) that was unmoved for the past two fortnights at Rs 27.84 per litre was upped by Rs 1.38 per litre to Rs 29.22 per litre.
By adding 8 paisa as the petrol pump commission, the HOBC will now be available at Rs 58.54, kerosene at Rs 31.08 and LDO at Rs 29.30 per litre.
Last time, the OCAC observed that during that fortnight the OMCs continue to finance the price of diesel by Rs 4.22 per litre, kerosene by Rs 6.28 per litre and Light Diesel Oil (LDO) by Rs 4.82 per litre. The price differential claim would be recovered from the government in due course.
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