Petrol, diesel raised by 10%

[Naveed Yaseen]

* Petrol price up by Rs 5.92 to Rs 62.13 per litre; HOBC by Rs 8.50 to Rs 78.78; light diesel oil by Rs 6.94 to Rs 54.94; Kerosene oil by Rs 7.48 to Rs 59.35

By Ijaz Kakakhel

ISLAMABAD: The government has approved an increase in prices of petroleum products by 10.5 to 19.7 percent for July, following an increase in oil prices in the international market.
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the carbon surcharge introduced in the 2009-10 annual budget has replaced the Petroleum Development Levy (PDL).
The price of petrol has been increased by Rs 5.92 per litre (or 10.5 percent) – from Rs 56.21 to Rs 62.13. The HOBC price has risen by Rs 8.50 per litre (or 12.1 percent) – from Rs 70.28 to Rs 78.78; that of light diesel oil by Rs 6.94 per litre (or 14.5 percent) - from Rs 48 to Rs 54.94 – and that of Kerosene oil by Rs 7.48 per litre from Rs 51.87 per litre to Rs 59.35 per litre.
Oil marketing companies have increased the price of high-speed diesel by Rs 6.94 to Rs 62.65 per litre. High-speed diesel is a deregulated product and its price is not determined by OGRA.
Talking to reporters, Petroleum Adviser Dr Asim Hussain said the increase had been made in the wake of a hike in oil prices in international markets. “The government has replaced the PDL with a carbon surcharge to introduce transparency in the oil pricing mechanism,” he said.
The tax will be levied at Rs 10 per litre on petrol, Rs 6 per litre on kerosene oil, Rs 3 per litre on light diesel oil, Rs 14 per litre on HOBC and Rs 8 per litre on high-speed diesel.
The adviser said the government has set a Rs 122 billion revenue target from carbon surcharge in 2009-10.
The prices of aviation fuels have also been increased. The new price of JP-1 jet fuel is Rs 45.82 per litre, JP-4 Rs 43.05 per litre, and JP-8 Rs 48.13 per litre.
Dr Hussain said the government had abolished the PDL on jet fuels and had not imposed carbon surcharge on them, because it wanted to deregulate aviation fuels.

http://www.dailytimes.com.pk/default.asp...2009_pg1_1