Price of petroleum products increased in Pakistan
'Pakistan Times' National News Desk

ISLAMABAD: The prices of petroleum products – Petrol, HOBC and Light Diesel – have once again been increased in Pakistan.

A communiqué says that the Oil and Gas Regulatory Authority (OGRA) has announced increase of Rs.3 per liter in ex-depot sale prices of Motor Spirit, HOBC and Light Diesel Oil and price of Kerosene oil will remain unchanged from Friday (April 18, 2008).

The existing Rs.62.81 per liter price of Motor Spirit has been enhanced to 65.81, HOBC from Rs.74.77 to Rs.77.77 and Light Diesel Oil from Rs.38.59 to Rs.41.59.

A Spokesman of the Authority said, the per liter price of Kerosene Oil will remain unchanged at Rs.41.44.

The price of petroleum products in the international market showed a record serge during the last several months which has compelled the GoP to pass on partial increase to consumers.

The spokesman further said the government will continue to provide a subsidy of Rs. 22.54 per litre on Kerosene oil and Rs.17.63 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 Equalization Margin (IFEM) is added, which reflects estimated transportation cost of the products to the 29 depots in the country, for the purpose of price equalization.

Government levies viz. Petroleum development levy and sales tax are added, to arrive at the notified prices.●