US-Iran standoff to send fuel prices through the roof | Pakistan Today | Latest news, Breaking news, Pakistan News, World news, business, sport and multimedia
- Massive increase likely in POL prices from February
- Petrol price likely to be increased by Rs 5.45 per litre
ISLAMABAD - Consumers will be faced with a massive increase in the prices of petroleum products because of the brewing crisis between Iran and the United States on the Strait of Hormuz, as the Oil and Gas Regulatory Authority (OGRA) has estimated an increase of Rs 3 to Rs 6.45 per litre on different POL products for the month of February.
An official source said an increasing trend in POL prices was witnessed during the last few days because of the intensification of statements between Iran and the US. He said usually POL prices started falling from January but this year, an increasing trend was witnessed because of the confrontation. He said the initial estimates of OGRA pointed out that the price of motor spirit (petrol) would have to be increased by Rs 5.45 per litre, High Octane Blended Component (HOBC) by Rs 6.45 per litre, High Speed Diesel (HSD) by Rs 3.13 per litre, Light Diesel Oil (LDO) by Rs 3.87 per litre and kerosene by Rs 2.98 per litre. OGRA would be making its final recommendations after a meeting to decide on the inland freight equalisation margin scheduled to be held on January 27.
OGRA had earlier notified an increase in petrol price by Rs 1.65 per litre to Rs 89.54 per litre and HOBC by Rs 5.13 to Rs 111.91 per litre with effect from January 1, 2012. The prices of HSD, LDO and kerosene were retained at last month’s level of Rs 98.82, Rs 86.78 and Rs 89.24 per litre respectively. To save the people from the negative impact of high inflation resulting from the increase in POL prices, OGRA had recommended lowering the Rs 10 per litre petroleum levy (PL) on POL products. However, the Finance Ministry had rejected the proposal. The government collects Rs 23 billion per month on taxation of POL products, Rs 16 billion per month in sales tax on POL and another Rs 7 billion as PL.