ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has recommended to the government to jack up per litre prices of petrol, high speed diesel and high octane blended component and to decrease prices of kerosene oil and light diesel oil for August 2014.
Sources in OGRA told Daily Times Authority after getting the determination from oil marketing companies (OMCs) has now dispatched future oil price review summary to the Ministry of Petroleum and Natural Resources under a monthly oil price review mechanism.
The OGRA has sought hike in petrol price by Rs 1.45 per litre, HOBC Rs 4.10 per litre and diesel (HSD) by Re 0.35 per litre while, it has also worked out decrease in the price of kerosene oil by Rs 1.10 per litre, light diesel oil (LDO) by Rs 1 per litre with start of August, they added.
At present, per litre price of petrol stands at Rs 107.97 per litre, HSD Rs 109.34 per litre and HOBC at Rs 134.36 per litre.
The sources told Finance Ministry would give Rs 1.15 billion subsidy if the PML-N government was interested to maintains the prices of petrol, high octane blended component and diesel at current level with an aim to provide relief to the inflation-stricken masses which were already bearing heavy brunt of skyrocketing prices of power tariff, essential commodities and prolonged power outages for a long time.
At present on account of petroleum levy, the government is collecting Rs 8.79 per litre on petrol, Rs 11.41 per litre on HOBC, Rs 6 on kerosene and Rs 6.29 per litre on HSD, while the government is also collecting general Sales Tax at 17 percent on the sale of petrol and petroleum products.
Sources in power corridors revealed the incumbent regime is likely to maintain POL prices at current level by giving subsidy to maintain the oil prices at current level as it does not want criticism from the masses ahead of severe political pressure from the opposition parties. The political forces are making hue and cry over prolonged power outages coupled with skyrocketing power tariff, soaring POL prices and high inflation rate. So, it is expected the government would give some relief at the advent of Eid-ul-Fitr to the already burdened masses as an Eid gift.
The government would prefer to secure public sympathies ahead of ‘million march’ of Pakistan Tehreek-e-Insaf (PTI) as its Chairman Imran Khan has threatened he would lead a million march from Lahore to Islamabad on August 14 come what may.
Tehreek-e-Minhajul Quran (TMQ) leader Dr Tahirul Qadri has also announced the journey of revolution to get rid from incumbent regime too, they added.
Daily Times on July 21 published a story, telling a mix trend in POL prices is likely for the upcoming August.
ISLAMABAD: Since the 1980s when the “new” free market economics kicked in, there has ...