ISLAMABAD: The government has decided not to pass on to consumers the full impact of declining oil prices in the international market in order to cover adjustments made in petroleum levy. It reduced the price of petrol by only Rs1.54 per litre to Rs87.41 and kept that of diesel unchanged at Rs94.15 per litre for the month of November.
The federal government deregulated the prices of almost all petroleum products in June this year and allowed refineries and oil marketing companies to announce ex-refinery and ex-depot prices every month, keeping in view the import parity price. However, prices are notified by the Oil and Gas Regulation Authority (Ogra).
An official of the petroleum ministry told Dawn that the impact of decline in the price of high speed diesel (HSD) in the international market was only 18 paisa per litre and, therefore, it was better to adjust it in the petroleum levy. According a notification issued by Ogra on Monday night, a reduction of Rs5.93 per litre has been made in high octane blending component (HOBC) -- from Rs112.65 to Rs106.72 per litre.
The price of kerosene has been reduced by 86 paisa per litre to Rs85.76 and that of light diesel oil (LDO) by Rs1.53 per litre to Rs81.99. LDO is used in certain pumps and machines, mainly in rural areas.
The price of ethanol mixed bio-fuel E-10 has been reduced by Rs1.54 per litre to Rs84.91.
The petroleum ministry official said the price of petrol had declined by Rs5 per litre in line with a reduction in global oil prices, but the government adjusted a major part of the fall in petroleum levy which had been raised to Rs9.52 per litre on petrol from Rs6.54 in October. After the adjustment, petroleum levy on HSD has risen to Rs4.44 per litre from Rs4.29 in October. According to the official, the budgeted petroleum levy on petrol is Rs10 per litre and on diesel Rs8.
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