KARACHI, Dec 15: The Oil Companies Advisory Committee (OCAC) on Saturday slashed the prices of high speed diesel (HSD) and light diesel oil (LDO) by 13.4 per cent and 3.5 per cent.

However, prices of other petroleum products had remained unchanged. The new prices will be effective from December 16-31.

Consumers will now pay Rs12.82 per litre to buy HSD as compared to Rs14.80 per litre while the price of LDO has been reduced to Rs11.56 per litre from Rs11.98 per litre.

OCAC made no changes in prices of petrol (MS 87 RON), kerosene, HOBC and JP-4, maintaining them at old rates of Rs28.74, Rs13.41, Rs32.96 and Rs12.80 per litre.

The price of HSD and LDO have seen a major reduction by 33.19 per cent and 29 per cent since October 1, 2001.

Meanwhile, transporters have hinted at cutting transport fares by 50 paisa to Re1 after Eid.

The chairman, Karachi Transport Federation (KTF), Salim Khan Banghash told Dawn on Saturday that he would call a meeting of his members on Sunday to review the cut in transport fares. “Consumers will hear good news after Eid,” he said.

President CNG and Petroleum Dealers Association, Abdul Sami Khan welcomed the decision of price cut in diesel as well as maintaining the prices of other products despite rising trend in global oil prices.

However, he said that the declining prices of diesel and petrol would prove disastrous for the ongoing CNG conversion as people would find diesel and petrol more feasible than CNG. The CNG conversion had slowed down in the recent months since the prices of petrol and diesel had started falling from October.

The government, he said, has to maintain the difference of 50 per cent between petrol and CNG. He said there was a need to decrease the gas prices by Rs 2.50 in order to attract more consumers towards CNG conversion.

Giving reasons of price revision, the OCAC, in a statement, said that the global prices for most products remained volatile during the fortnight with significant upward and downward swings but ending with a slight overall increase in the average FOB prices.

Crude oil prices on the other hand registered much sharper increase in anticipation of oil cut by Russia. HSD, however, was the only product whose price had declined in the previous fortnight.

War risk insurance on hull and machinery for HSD imports has also been removed from the current fortnight, which has also contributed to the overall decrease in consumer price of the product.

The increase in product price was nullified by the appreciation of the rupee against the dollar as a result of which the consumer selling prices have remained unchanged for most products, OCAC said.

The Committee said that it remains to be seen what trend the prices will take in the coming weeks as uncertainty still prevails within the oil world.

Product Existing Revised Difference/

Rs/litre Rs/litre Rs/litre Percentage

MS 87 RON 28.74 28.74 Nil Nil

HOBC 32.96 32.96 Nil Nil

Kerosene oil 13.41 13.41 Nil Nil

HSD 14.80 12.82 1.98 13.4

LDO 11.98 11.56 0.42 3.5

JP-4 12.80 12.80 Nil Nil