Petrol price raised by Rs 5, diesel by Rs 3.50
The government has increased petroleum products' prices, which will be effective for the fortnight, from March 1 to March 15. The petrol price has been raised from Rs 53.70 per litre to Rs 58.70, diesel from Rs 32.57 per litre to Rs 36.07, kerosene oil from Rs 35.23 per litre to Rs 38.73 and HOBC per litre from Rs 64.88 to Rs 69.88, a notification of Oil and Gas Regulatory Authority (Ogra) said. The oil prices in the international market showed a record surge during the last several months, which compelled the government to pass on partial increase to consumers, said a government spokesman. The petrol and HOBC prices have been raised by Rs 5.00 per litre, while prices of kerosene oil and light diesel oil have been raised by Rs 3.50 per litre. The spokesman further said the government will continue to provide a subsidy of Rs 16.82 per litre on kerosene oil and Rs 15.30 per litre on light diesel oil, after the price increase. The price computation is carried out by OGRA in accordance with the formula prescribed by the Federal Government. It requires that the price be based on average Arab Gulf prices for the last fortnight for Naphtha, Diesel, Kerosene and HSFO, to which Inland Freight Equalisation Margin (IFEM) is added, which reflects estimated transportation cost of the products to the 29 depots in the country for the purpose of price equalisation. Government levies viz. petroleum development levy and sales tax are added to notified prices. Copyright Business Recorder, 2008