ISLAMABAD: The government has again decided not to reduce prices of petroleum products despite a decline in oil prices in the international market, apparently to cover adjustments made in petroleum levy.
It added to the woes of already overburdened consumers by increasing the price of high speed diesel (HSD) by Rs4.67 to Rs98.94 per litre and that of petrol by 48 paisa to Rs87.89 per litre for the month of December.
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 practically determined by the Ministry of Petroleum and Natural Resources and notified by the Oil and Gas Regulation Authority (Ogra).
According to a notification issued by Ogra on Wednesday night, the price of country’s only bio-fuel (E-10) has been increased by 48 paisa to Rs85.39 per litre.
The price of high octane blending component (HOBC) has been raised by six paisa to Rs106.78 per litre, kerosene by Rs3.48 to Rs89.24 per litre and light diesel oil (LDO) by Rs4.79 to Rs86.78 per litre.
LDO is used in certain pumps and machines, mainly in rural areas.
Ogra said the government had decided to increase the prices of petroleum products because of changes in international prices and exchange rate.
Sources said Ogra had suggested measures to reduce prices of key petroleum products for December, but the final summary approved by the petroleum ministry came up with an increase in the prices. The measures rejected by the ministry included reduction in IFEM (internal freight equalisation margin) and adjustments in petroleum levy.
A petroleum ministry official said petroleum levy had been increased for petrol, HOBC and HSD to mitigate budgetary constraints.
The petroleum levy on petrol has been increased from Rs9.52 to Rs9.94 per litre, on HOBC from Rs6.13 to Rs7.62 and on HSD from Rs4.44 to Rs5.09 per litre.
However, petroleum levy is still lower than the budgeted amount of Rs8 per litre for HSD, Rs14 for HOBC and Rs10 for petrol.
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