ISLAMABAD: The federal government has increased petroleum products’ prices by 9.9 percent in line with a hike in fuel prices in the international market.Even after this increase in oil prices, the government will be bearing a subsidy of Rs 5 billion for this month (March). As per reports, the rate of petroleum levy (PL) has also been increased to collect revenue to control the fiscal deficit.According to an Oil and Gas Regulatory Authority (OGRA) announcement, new price of petrol will be Rs 80.19 per litre with an increase of Rs 7.23, HOBC Rs 95.25 per litre with an increase of Rs 8.58, High Speed Diesel (HSD) Rs 86.09 per litre with a surge of Rs 7.76, Light Diesel Oil (LDO) Rs 73.21 per litre with a raise of Rs 6.6, kerosene oil Rs 77.95 per litre with a surge of Rs 7 per litre, JP-1 (local) Rs 74.37 per litre with an increase of Rs 5.89 per litre, JP-4 Rs 68.45 per litre with a raise of Rs 3.34 per litre and JP-8 Rs 74.07 per litre with an increase of Rs 5.88 per litre.The new prices of petroleum products will be effective from today (Tuesday).Addressing a press conference, OGRA spokesman, Jawad Naseem, said, “The government has increased the petroleum levy on petrol from Rs 2.2 to Rs 6.25 per litre, HOBC from Rs 4.84 to Rs 9.80 per litre and HSD from Rs 0.55 to Rs 3.75 per litre.”In the international market, Naseem said, the price of petrol had gone up from $102.62 to $120 per barrel, kerosene from $109.60 to $128.74 per barrel and gasoline from $107.26 to $125.62 per barrel because of the prevailing unrest in the Middle East.
“Distributor and dealer margins for MS, HOBC, kerosene and LDO have been fixed according to the ECC decision,” Naseem said, adding that although dealers were protesting, no change had been made in their margins. The OGRA spokesman further said that despite the raise in oil prices, the government was giving Rs 5 billion subsidy for the month of March.Also, the OGRA, on Monday, increased the price of compressed natural gas (CNG) by Rs 5.33 per kilogramme by amending the pricing mechanism to link gas price with gross calorific value (GCV).The authority notified new maximum sale price of CNG ranging between Rs 53.45 per kg to Rs 58.78 per kg. Sources say that the All-Pakistan CNG Association (APCNGA) has also supported the new CNG pricing mechanism which had resulted in different prices in different parts of the country – Dailytimes