KARACHI, Dec 31: The Oil Companies Advisory Committee (OCAC) has increased the prices of petroleum products by Rs 1.36 to Rs 1.48 per litre.

The two leading companies — Pakistan State Oil (PSO) and Shell Pakistan Limited (SPL) — have also raised the prices of high speed diesel (HSD) by 92 paisa or 4.5 per cent per litre to Rs 21.14 from Rs 20.22. The new prices will be effective from Jan 1 to 15.

The ex-depot price of petrol has been enhanced by Rs 1.48 per litre to Rs 32.50 from Rs 31.02 per litre, while high octane blending component (HOBC) price has been increased by Rs 1.39 per litre to Rs 36.41 from Rs 35.02 per litre.

The new rate of kerosene oil has been fixed at Rs 20.70 from Rs 19.26 per litre, up by Rs 1.44 per litre or 7.48 per cent.

The new price of light diesel oil (LDO) has been raised by Rs 1.36 per litre, says a press release of the OCAC.

The OCAC, like past practice, has kept silent that why domestic oil prices have been raised. No comparison of global price in the current fortnight as compared to previous 15 days and rupee-dollar parity has been mentioned in the OCAC statement. Oil analysts had already predicted an increase in the POL prices by four to eight per cent owing to rising trend of crude oil and finished product price in global markets on war fears. However, an official in a leading oil marketing company (OMC) attributed the diesel price hike to increase in ex-refinery prices by local refineries.

The price hike on Dec 31 seems contrary to the Dec 30 statement of the petroleum minister, Chaudhry Naurez Shakoor Khan, saying that the government would review petroleum prices and all unnecessary levies on oil products would be removed.

“If the government is so concerned about the consumers — then why it has not taken any hit on itself on Tuesday by cutting the petroleum development levy (PDL), which alone generates revenues to over Rs 35 billion per annum and causes hardships to the consumers,” oil analysts said while terming the price hike as “the first gift of the new year 2003 from the new government.”

This is the third adjustment of petroleum prices under the civilian government. In the first revision on Nov 30, all prices of all oil products, were slashed by 2.88 to 6.44 per cent. On Dec 15, oil prices, including diesel, were increased by 0.50 to 2.55 per cent. The Dec 31 price hike is the second consecutive surge in oil products in the last 15 days.