The government is likely to reduce prices of the major petroleum products in the range of Rs 5 to Rs 15 per litre effective January 1, 2015 following a reduction in global fuel price which came down to $60 per barrel, Petroleum Ministry officials said. With the global oil markets buoyed by a glut of crude oil coming out of the US shale reservoirs, the downward trend in the value of crude oil is likely to continue, which come down to as low as $60 per barrel in the international market.
"We are expecting that this time our average crude oil import price will remain around $65 per barrel so based on these calculation we will reduce the prices of major petroleum products in the range of Rs 5 to Rs 15 per litre," the official said. Current petroleum prices were fixed keeping in view the imports of November for which contracts were signed in October 2014 and November's average crude oil price remained at $77 per barrel which at present in Saudi Armco declined to $60 per barrel, the official added.
The official said the Oil and Gas Regulatory Authority (OGRA) will forward a summary regarding the review in petroleum product prices on December 29, 2014, to the ministry of Finance and Ministry of Petroleum for final approval. The price of oil in the international market has seen a 50 percent decrease since June, 2014 and keeping in view the international fuel price, a reduction of Rs 15 per litre in petrol price is expected which at present is selling at Rs 85 per litre and next month likely to be fixed at Rs 70 per litre.
From January 1, 2015 Pakistani consumers are likely to enjoy a reduction of Rs 8 per litre in High Speed Diesel (HSD) price, Rs 12 in High Octane Blending Component (HOBC) price, Rs 6 per litre in Kerosene Oil (KO) price and Rs 6 per litre in Light Diesel Oil (LDO).
Meanwhile, the Liquefied Petroleum Gas (LPG) marketing companies have increased the commodity prices by Rs 10 per kg, Rs 120 per domestic cylinder and Rs 450 per commercial cylinder. LPG prices within a week have reached Rs 180 per kg against Rs 130 per kg as the government has given the LPG marketing companies' free hand to fleece masses. According to Mohammad Irfan Khokhar, Chairman All Pakistan LPG Distributors Association, this is the third increase in the LPG prices within a week as on Saturday December 13 the LPG marketing companies increased the commodity prices by Rs 20 per kg, Rs 240 per domestic cylinder and Rs 1,000 per commercial cylinder without any notification by the government and on December 15 these companies further increased the commodity prices by Rs 5 per kg, Rs 60 per domestic cylinder of 11.8 kgs and Rs 240 per commercial cylinder of 45 kgs without the approval of OGRA.
Copyright Business Recorder, 2014
Price of petrol was Rs 103/litre in Octuber and should be Rs 70 in couple of weeks. I most say Pak petrol prices are much lower then other countries in region.
"We are expecting that this time our average crude oil import price will remain around $65 per barrel so based on these calculation we will reduce the prices of major petroleum products in the range of Rs 5 to Rs 15 per litre," the official said. Current petroleum prices were fixed keeping in view the imports of November for which contracts were signed in October 2014 and November's average crude oil price remained at $77 per barrel which at present in Saudi Armco declined to $60 per barrel, the official added.
The official said the Oil and Gas Regulatory Authority (OGRA) will forward a summary regarding the review in petroleum product prices on December 29, 2014, to the ministry of Finance and Ministry of Petroleum for final approval. The price of oil in the international market has seen a 50 percent decrease since June, 2014 and keeping in view the international fuel price, a reduction of Rs 15 per litre in petrol price is expected which at present is selling at Rs 85 per litre and next month likely to be fixed at Rs 70 per litre.
From January 1, 2015 Pakistani consumers are likely to enjoy a reduction of Rs 8 per litre in High Speed Diesel (HSD) price, Rs 12 in High Octane Blending Component (HOBC) price, Rs 6 per litre in Kerosene Oil (KO) price and Rs 6 per litre in Light Diesel Oil (LDO).
Meanwhile, the Liquefied Petroleum Gas (LPG) marketing companies have increased the commodity prices by Rs 10 per kg, Rs 120 per domestic cylinder and Rs 450 per commercial cylinder. LPG prices within a week have reached Rs 180 per kg against Rs 130 per kg as the government has given the LPG marketing companies' free hand to fleece masses. According to Mohammad Irfan Khokhar, Chairman All Pakistan LPG Distributors Association, this is the third increase in the LPG prices within a week as on Saturday December 13 the LPG marketing companies increased the commodity prices by Rs 20 per kg, Rs 240 per domestic cylinder and Rs 1,000 per commercial cylinder without any notification by the government and on December 15 these companies further increased the commodity prices by Rs 5 per kg, Rs 60 per domestic cylinder of 11.8 kgs and Rs 240 per commercial cylinder of 45 kgs without the approval of OGRA.
Copyright Business Recorder, 2014
Price of petrol was Rs 103/litre in Octuber and should be Rs 70 in couple of weeks. I most say Pak petrol prices are much lower then other countries in region.
