KARACHI, Dec 31: The Oil Companies Advisory Committee (OCAC) on Monday raised the petroleum products prices by 2.52 per cent to 12.87 per cent. The new prices will be effective from Jan 1, 2002.

The price of High Speed Diesel (HSD) has been increased by 12.87 per cent to Rs14.47 from Rs12.82 per litre, while the petrol price has been fixed at Rs29.59 from Rs28.74 per litre, up by 2.96 per cent.

Kerosene oil will now cost Rs13.98 as compared to Rs13.41 per litre, while the new price of light diesel oil (LDO) has been revised upward to Rs12.31 from Rs11.56 per litre. JP-4 and HOBC will now be available at Rs13.52 and Rs33.79 per litre as compared to Rs12.80 and Rs32.96 per litre.

The OCAC linked the petroleum price hike to overall rise in the average FOB oil prices in global markets. It said that crude oil prices also surged during the fortnight due to anticipated oil cut by the Opec. The rise in the POL prices was partly mitigated by the appreciation of the rupee against the dollar.

The government has also increased the petroleum development levy (PDL) on HSD by 0.75 paisa per litre and 0.25 paisa on petrol, HOBC, kerosene, LDO and JP-4 from Jan 1, 2002, due to shortfall in the general sales tax against the budgetary amount in respect of petroleum products.

Besides, Shell Pakistan Limited has increased the prices of furnace oil to Rs9,257.75 per ton from Rs9,136.75 per ton.

“The rise in PDL will generate around three billion rupees revenue in the coming six months for POL products as CBR’s earnings are not according to the targets,” Head of Research at Invest Cap, Mohammad Sohail said, adding that earnings alone in HSD would come to Rs2.7 billion as the consumption of HSD in six months is three million tons.

Transporters have threatened to revert the Dec 24 decision of price cut in fares due to exorbitant rise in diesel prices. “I will call a meeting of my members on Wednesday to review the decision,” President Karachi Transport Ittehad Irshad Bukhari told Dawn.

Product Existing Revised Difference Percentage

Rs/litre Rs/litre Rs/litre

MS 87 RON 28.74 29.59 0.85 2.96 HOBC 32.96 33.79 0.83 2.52 Kerosene oil 13.41 13.98 0.57 4.25 HSD 12.82 14.47 1.65 12.87 LDO 11.56 12.31 0.75 6.49 JP-4 12.80 13.52 0.72 5.62