PM approves hike in petrol, diesel prices

ISLAMABAD: Prices of petroleum products have been raised between 10.5 per cent and 19.7 per cent for the month of July by the government due to the increase of oil prices at the international markets.

The newly introduced carbon surcharge also replaces the petroleum development levy from July 1, 2009.

Prime Minister Syed Yousuf Raza Gilani has approved the summary forwarded by the petroleum ministry, while the oil and gas regulatory authority has notified the new prices.

According to the official figures the price of petrol has been increased by Rs5.92 per litre or 10.5 per cent to Rs62.13, HOBC by Rs8.50 per litre or 12.1 per cent to Rs78.78, light diesel oil Rs6.94 per litre or 14.5 per cent to Rs54.94, kerosene oil Rs7.48 per litre to Rs59.35 per litre.

Meanwhile, the oil marketing companies have increased the price of high speed diesel by Rs6.94 to Rs62.65 per litre, as it was a deregulated product and its pricing was not done by OGRA.

Advisor to the PM on Petroleum Dr Asim Hussain, while talking to Dawn said that the increase has been done in wake of high oil prices at the international markets.

He said that the government has replaced the PDL with Carbon surcharge to introduce transparency in the oil pricing mechanism.

The government has set the target to generate Rs122 billion from the carbon surcharge in the fiscal 2009-10, and it has been levied at the rate of Rs10 per litre on petrol, Rs6 per litre on kerosene oil, Rs3 per litre on Light Diesel Oil (LDO), Rs14 per litre on HOBC and for high speed diesel (HSD) it is Rs8 per litre.

Meanwhile the prices of aviation fuels have also been increased in line with the rise in international oil prices and the rates of jet fuels for July are JP-1 Rs45.82/ litre, JP-4 Rs46.06/ litre, JP-8 Rs48.54/ litre.

JP-1 is consumed by the cargo planes and the airliners, while the JP-4 and JP-8 was the fuel of military aircrafts. Pakistan was also the key supplier of aviation fuels to the Nato forces in Afghanistan.

However Dr Hussain also said that the government was not collecting any major amount from the jet fuels as the PDL on jet fuels has been abolished and the carbon surcharge on it was not imposed. He said that the government wanted to deregulate the aviation fuel. link....