ISLAMABAD: The government is likely to increase prices of Petroleum, Oil and Lubricant (POL) products ranging between Rs 4.5 to Rs 7.5 per litre, while price of Compressed Natural Gas (CNG) by Rs 4.5 per kg from August 1, 2012 for the next fortnight, it is learnt.
According to sources in the Ministry of Petroleum and Natural Resources, in line with the trend of international crude oil prices, the Oil and Gas Regulatory Authority (OGRA) has calculated an increase of Rs 7.5 per litre in the price of High Octane Blending Oil (HOBC).
Sources further quoting the calculation of the regulatory authority stated that from August 1 price of Petrol would be increased by Rs 7.35 per litre, High Speed Diesel by Rs 5.40 per litre, Kerosene Oil by Rs 4.60 per litre and Light Speed diesel by Rs 4.5 per litre, as price of crude oil increased in the global market by $4.5 per barrel.
The official said the Gulf market has witnessed a substantial hike in the price of crude oil and petroleum products in the last eight days and seen the price of crude oil rise by $4.50 per barrel, from $96 to $100.5.
As a result, Ogra has completed its preliminary work on price revision under which the price of petrol is likely to be increased by Rs 7.35 per litre, HOBC Rs 7.5 per litre, kerosene oil Rs 4.60 per litre, HSD by Rs 5.40 per litre and LDO by Rs 4.50 per litre.
At present, different POL products are being sold on following prices in Pakistan: HOBC at Rs 112.52 per litre, Petrol at Rs 85.9 per litre, HSD at Rs 97.21 per litre, LDO at Rs 85.33 per litre and Kerosene Oil at Rs 88.19 per litre. If the government is increasing the POL prices from August 1, HOBC would be sold at Rs 120 per litre, petrol at Rs 92.75 per litre, LDO at Rs 89.83 per litre, HSD at Rs 102.61 per litre and Kerosene oil at Rs 92.79 per litre.
According to sources, Rs 7.35 per litre increase in the price of petrol will lead to an increase in the price of CNG by Rs 4.5 per kg. “As diesel and CNG are heavily used in the transportation of goods and vegetables across the country and within the districts that would further intensify inflation, resultantly multiplying the economic miseries to a large extent,” they said.
The expected increase in POL prices and CNG would bring another wave of inflation across the country, as the masses are already passing through a difficulty owing to the skyrocketing prices of daily use items.
The price revision will further aggravate miseries of inflation-ridden and poverty-stricken masses in the on-going month of Ramazan, when prices of all kitchen items and vegetables have gone up because of the massive hoarding of daily use items, as inefficient and corrupt provincial and local administrations have been unable to bring to an end the practice.