KARACHI, July 10: After frequent increases in petrol, diesel, CNG and LPG rates, the vehicle owners would have to face another burden of price-hike in lubricants.

The total annual consumption of lubricants in the country is 400,000 tons. Of which the local production is 175,000-180,000 tons, and legal imports hover between 20,000 and 25,000 tons. There is another production of 5,000 tons from reclaimed oil and the rest of the demand is met through smuggled and fake lubricants.

The All-Pakistan Lubricants Manufacturers Association (APLMA) claimed that prices of lubricants would further surge by Rs14 per litre in the coming days as a fresh increase of Rs11 per litre in lube base oil prices had been made by the Attock Refinery Limited (ARL).

During the last six months, the lube base oil prices have surged by Rs56 per litre. Base oil is the main raw material used in the manufacture of lubricants.

From July 10, 2007 to June 2, 2008, the base oil prices surged by at least Rs56 a litre while the lube base oil prices increased by at least 12 times between February 1 and June 2.

APLMA chairman Mian Zahid Hussain was of the view that lubricants prices have almost doubled during the last one year, and the only way to reduce its prices was abolishing various duties and taxes as there was a 10 per cent excise duty and 15 per cent sales tax on lubricants.

He said as a result of meteoric rise in prices, its impact was being felt on annual sales.

Lubricants sale in the current fiscal remained between 175,000 and 180,000 tons as compared to around 200,000 tons in the last fiscal.

He said that rising crude oil prices, coupled with the devaluation of rupee against dollar was responsible for an increase in lubricants prices.

According to a petroleum dealer, Delo Gold diesel engine oil (four litres) is now priced at Rs1,262 as against Rs986 in October 2007. Similarly the CNG/petrol engine oil of the same brand now sells at Rs1,096 as compared to Rs835 in October 2007.