News
Wednesday, February 01, 2012
Massive hike in petroleum prices
* Petrol price increased by Rs 5.37 per litre, diesel up by Rs 4.64 per litre
By Zeeshan Javaid
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA), following approval by the federal government, announced a massive increase of upto Rs 6.29 in prices of petroleum products, with effect from today (Wednesday).
According to a notification issued by OGRA, the price of petrol has been increased by Rs 5.37 per litre, high octane blended component (HOBC) by Rs 6.29, kerosene oil by Rs 2.59, high speed diesel (HSD) by Rs 4.64 and the price per litre of light diesel oil (LDO) has been increased by up to Rs 3.43 with immediate effect.
After the massive increase announced by the authorities, the new price of petrol has been fixed Rs 94.91, High Octane Blended Component (HOBC) Rs 118.20, high speed diesel (HSD) Rs 103 46, light diesel oil (LDO) Rs 90.21, while the most useable fuel for poor people, kerosene oil, will be sold now at Rs 126.11 per litre.
The government would continue earning petroleum levy of Rs 10 per litre for petrol, Rs 7.62 on HOBC, Rs 6.50 for HSD, Rs 2.72 on LDO and Rs 4.82 on superior kerosene oil. The authorities claimed that to save the people from the negative impact of inflation due to this hike in POL prices, OGRA had recommended lowering of the levy on petrol and diesel.
However, the Finance Ministry had rejected the proposal last month. The government collects Rs 23 billion per month due to taxation of POL products. It collects Rs 16 billion per month in sales tax on POL products, while another Rs 7 billion are collected as PL.
The federal government, which has already been facing a tough time from its competitors, opened warfare in the Parliament House for crucial debate over the recent hike in POL prices that ultimately directly cause for increase in inflation.
Courtesy www.dailytimes.com.pk