The government is likely to reduce prices of the major petrol products in the range of Rs 5.5 to Rs 11 per litre from February 1, it is learnt. According to officials privy to the developments, the price of HOBC is expected to go down by Rs 11 per litre, petrol by Rs 8.75 per litre, High Speed Diesel by Rs 8 per litre, Light Diesel by Rs 7.50 per litre and kerosene oil by Rs 5.5 per litre.
The Ogra on January 30 will send a summary to the PM after calculating prices of the imported oil and it is expected that the price of major oil products may further decline as at least three ships by the end of the current month are due to reach Karachi port. "Keeping in view current trends it is expected that the prices of the major oil products may reduce by Rs 5.5 to Rs 11 per litre", the official said.
Since March 2014 to January 1, 2015 the government has reduced the petrol price from Rs 110 to Rs 78.5 per litre, HSD from Rs 116 to Rs 86.23 per litre, HOBC from Rs 136 to Rs 92 per litre, Kerosene Oil from Rs 106 to Rs 71.9 per litre and LDO from Rs 101 to Rs 67.5 per litre. Petrol prices are fixed as per following formula: 22 percent GST (a recent increase of 5 percent), petroleum levy at a flat rate as per follows: Rs 10 per litre on petrol, Rs 14 per litre on HOBC, Rs 6 per litre on kerosene oil, Rs 8 per litre on HSD and Rs 3 on LDO: inland freight margin, at Rs 3.36 per litre for petrol, HOCB Rs 2.76 per litre, HSD Rs 1.76 per litre, kerosene Rs 1.58 per litre and LDO Rs 1.61 per litre; distributors' margin for petrol at Rs 2.35 per litre, HOBC at Rs 1.72 per litre, kerosene oil at Rs 1.58 per litre, HSD Rs 2.35 per litre and LDO Rs 1.61 per litre; whereas dealers' margin stands at Rs 3.08 per litre, HOBC at Rs 2.15 per litre and HSD Rs 2.60 per litre.