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POL prices to decrease sharply if relief is passed on* Masses to experience relief of up to Rs 4.50 per litre from April if ministry gives a nod
ISLAMABAD: Pakistanis are likely to witness a decrease in the prices of POL products by up to Rs 4.50 per litre if the impact of declining trend in the price of crude oil in global market is passed on to the masses, it was learnt.
Viewing the declining trend of price of crude oil in global oil markets, the per litre prices of petroleum products (POL) is likely to scale down with the start of next month. However, a final decision regarding whether to pass on their relief to the consumers will be made by the Finance Ministry on March 31.
Under a monthly oil price review mechanism, good news for already-burdened masses regarding decrease in the sky rocketing POL prices has been estimated in line with dwindling trend in the price of crude oil in gulf market.
The price of crude oil has been reduced by $3 per barrel and reached at $105/barrel. “Due to declining trend in the price of crude oil in the international and the Gulf oil markets, Rs 4.50/liter cut is likely from April 1 in the country,” said an official at the Ministry of Petroleum and Natural Resources.
Citing the estimations made so far by some quarters concerned, ministry sources also told Daily Times that prices of kerosene oil would go down by Rs 4.50/liter, petrol by Rs 1.05, high-octane blended component (HOBC) by Rs 3.45, high-speed diesel (HSD) by Rs 0.95 and light diesel oil (LDO) by Rs 3.35 per litre.
“So far, around 3 percent depreciation in the value of dollars in comparison with Pak rupee has been recorded. And, the benefit/impact of increase in the value of Pak rupee will also be passed on to the POL consumers, already bearing heavy brunt of sky rocketing prices,” an official at the Finance Ministry said. Sources also said that the Finance Minister would seek final approval of the prime minister prior to making a decision regarding fixing POL prices for the month of April.
The sources also informed that determination of Inland Freight Equalisation Margin (IFEM) would be made on March 26 and the Oil and Gas Regulatory Authority (OGRA) would work out oil prices after completing consultation with the oil marketing companies (OMCs). The regulatory authority (OGRA) would dispatch POL prices’ summary to the Ministries of Finance and Petroleum on March 28.
It is to note here that the incumbent regime did not pass on the full impact of the declining trend of crude’s price in the international market to the POL consumers and kept unchanged the prices of major petroleum products by increasing the petroleum levy, denying the consumers any benefit from the reduction of prices in the international market.
Last month, OGRA in its oil prices’ summary for the month of March recommended to the federal government to reduce the per litter price of petrol by up to Rs 2.72 per litre, high octane blended component (HOBC) by Rs 1.30/litre, Kerosene oil by 48 paiasa/litre and high speed diesel (HSD) by Rs 1.07/litre, while a 30 paisa cut in per litre price of light diesel oil (LDO) was also proposed. However, the PML-N government approved just Rs 2.73 per litre decrease in petrol price instead of expected Rs 3.44, thereby depriving the consumers of petrol of a significant relief by setting aside the declining trend of POL prices through increasing the GST and jacking up petroleum levy (PL) by 71 paisas.
Courtesy www.dailytimes.com.pk