The government has introduced a new mechanism for determining prices of High Octane Blending Component (HOBC) according to which different rates of the commodity will be fixed for different cities. According to sources in the Petroleum Ministry, the mechanism would be enforced from Monday across the country.
Accordingly price of the commodity in Karachi will go up by 36 paisa per litre, while in Lahore and Multan it will reduce by Rs 1.5 per litre and in other cities it will decline by Rs 2.36 per litre. Marketing companies keeping in view their expenditures will determine HOBC price, as the government has removed the inland freight equalisation charges on the commodity.
The government is to reduce prices of petroleum products by up to Rs 6 per litre and price of CNG by up to Rs 5.25 per kg, effective from October 1. The Oil and Gas Regulatory Authority has forwarded a summary to the Ministry of Finance based on the current international fuel price.
The authority has recommended the government to reduce Motor Spirit (petrol) price by Rs 6 per litre, High Speed Diesel (HSD) by 14 paisa per litre, HOBC by Rs 2.36 (excluding Karachi) per litre, Light Speed Diesel Oil (LDO) by 95 paisa per litre and Kerosene Oil by 40 paisa per litre. The government on September 23 increased the petrol price by Rs 1.73 per litre and CNG by Rs 1.55 per kg. CNG price is linked with petrol price any change in the petrol price would automatically change CNG price, an official of Oil and Gas Regulatory Authority said.
Currently different POL products are available on following rates: HOBC at Rs 131.9 per litre, Petrol at Rs 108.45 per litre, High Speed Diesel at Rs 113.3 per litre, Light Speed Diesel at Rs 97.17 per litre and Kerosene Oil at Rs 101.63 per litre. After the expected reduction in the POL prices, HOBC will be sold at Rs 125.04 per litre, HSD at Rs 113.16 per litre, LDO at Rs 95.67 per litre, petrol at Rs 102.45 per litre and kerosene oil at Rs 100.43 per litre.
Similarly, the price of CNG is expected to go down by Rs 5.49 per kg, which at present is being sold at Rs 99.28 in region-I, consisting of Potohar, Khyber Pakhtunkhwa and Balochistan and at Rs 90.7 per kg in region-II, consisting of Sindh and Punjab.