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Govt rejects Ogra’s advice to cut POL prices

May 01, 2012 - Updated 610 PKT
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Our correspondent

ISLAMABAD: The government has rejected the recommendations of Oil and Gas Regulatory Authority (Ogra) seeking reduction in the POL prices, rather it issued the notification of maintaining all the petroleum products at the existing prices with immediate effect from May 1, 2012 (today).

The Ogra has recommended the decrease in price of the POL products by Rs4.89 per litre. However, the government has decreased the light diesel oil price by Rs1.31 per unit, but maintained all the remaining POL products’ at the existing prices.

In the month of April, the price of crude oil in international market tumbled by $3 per barrel to $121 per barrel owing to which the Ogra had recommended to reduce prices of petrol by Rs1 per litre, HOBC by Rs4.89 per litre, kerosene oil by Rs2.13 per litre, high speed diesel (HSD) Rs1.31 per litre, and LDO (light diesel oil) by Rs1.64 per litre.

However, the Finance Ministry has increased the petroleum levy by up to Rs4.10 per litre on POL products from May 1, 2012 which is why the prices of petrol will stand at Rs103.36 per litre, high speed diesel Rs107 per litre, LDO Rs97.43 per litre, HOBC Rs135.81 per litre, kerosene oil Rs99.95 per litre.

Had the government not increased the petroleum levy, then the price of petrol would been decreased by Rs1 per litre, HOBC by Rs4.89 per litre, kerosene oil by Rs2.13 per litre, high speedy diesel (HSD) Rs1.31 per litre, and LDO by Rs1.64 per litre.

The government has increased the petroleum levy on petrol to Rs8.86 from Rs8 per litre, on HOBC to Rs11.84 from Rs7.62 per litre, on kerosene oil to Rs5.15 from Rs3.32 per litre, on HSD to Rs4.20 from Rs3.07 per litre and on LDO to Rs3 from Rs2.72 per litre.


 
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