The prices of petroleum products are expected to go down by as much as Rs 3.75 per litre from May 1, as the crude oil price in the global market witnessed a reduction of $3 per barrel, it is learnt. Sources in the ministry of petroleum and natural resources said that price of petrol is expected to be lowered by Rs 1.3 per litre, High-Octane (HOBC) by Rs 3.75 per litre, Light-Speed Diesel (LDO) by Rs 1.55 per litre, High-Speed Diesel by Rs 0.16 per litre and Kerosene Oil (KO) by Rs 1.6 per litre.
Petroleum Ministry officials said that the government was also planning a reduction of Rs 1.4 per kg in the price of compressed natural gas (CNG). This month the government was compelled to marginally reduce POL prices after countrywide protests were launched by the mainstream opposition political parties, traders, transporters and masses at large.
On April 1, the government increased petrol price by Rs 8.02 per litre, HOBC by Rs 8.94 per litre, kerosene oil by Rs 5.29 per litre, Light Speed Diesel Oil by Rs 5.45 litre and High Speed diesel by Rs 4.70 per litre. On April 4, the Oil and Gas Regulatory Authority (Ogra) notified a reduction of Rs 2.32 per litre in petrol price, Rs 1.16 per litre in diesel and Kerosene oil price was cut by Rs 1.74 per litre, while no change was made in the prices of HOBC and diesel.
Currently, prices of various petroleum products are as follows: petrol at Rs 103.36 per litre, High Speed Diesel at Rs 107, Kerosene Oil at Rs 99.95 per litre, High Octane at Rs 135.81 per litre and Light Speed Diesel at Rs 98.74 per litre. However, Secretary of the Petroleum Ministry Mohammed Ejaz Chaudhary said that that after May 15, POL prices would be revised on fortnightly basis, instead of monthly basis. Due to an increase in prices of petroleum products in international market, the government kept increasing POL prices over the past four months.
In June 2011, the government had already deregulated prices of many petroleum products, including motor spirit (petrol), HOBC, LDO, jet fuels JP-1, JP-4 and JP-8. After the deregulation of oil prices the oil refineries and oil marketing companies are announcing ex-refinery and ex-depot prices on a monthly basis, keeping in view import prices. However, the government notifies prices after fixing inland freight equalisation margin and petroleum levy, which falls in its domain.