Petroleum products prices jacked by up to Rs8.18/litre

ISLAMABAD: Passing on the impact of the rise in global oil prices, the government increased the POL prices by Rs8.18 per litre and the price of CNG by Rs7.11 per kg from Saturday (today).

The Oil and Gas Regulatory Authority (Ogra) has opposed pushing the brunt of the global hike in the POL prices to consumers and the Ministry of Petroleum and Natural Resources had recommended passing on just 50 percent of the total hike to consumers.

However, the Ministry of Finance decided not to absorb any portion of the price by reducing the petroleum levy and chose to increase the POL and CNG prices instead.

The government has increased the price of motor spirit (petrol) by Rs7.77 per litre, High Octane Blending Component (HOBC) by Rs8.18 per litre, Light Diesel Oil (LDO) by Rs5.54 per litre and kerosene by Rs5.86 per litre. In the wake of the increase in petrol price, the price of CNG in Region-I has increased by Rs7.11 per kg and in Region-II by Rs6.50 per kg.

Ogra did not issue a notification about the increase in the POL prices except for the rise in the price of kerosene and CNG. The price of petrol will now stand at Rs104.55 per litre, HOBC at Rs133.19 per litre, HSD at Rs112.13 per litre, LDO at Rs98.94 per litre and theprice of kerosene will be Rs102.21 per litre.

Under the Ogra notification, the CNG price in Region-I will be Rs95.75 per kg and in Region-II it will be Rs87.44 per litre.The increase in the price of HSD is expected to set off another inflationary spiral since all goods, including kitchen items and vegetables, are transported mainly through diesel-run vehicles.