Govt makes 'heavy' cut in petroleum prices
16 June, 2012
ISLAMABAD: The government on Friday slashed oil prices by up to Rs 11.75 per litre following a decline in global crude oil rates. The new prices will be effective from June 16 to June 30.
Following cut in oil prices, the government has also reduced rates of Compressed Natural Gas (CNG) by Rs 4.82 per kilogramme in region 1 and Rs 4.37 per kilogramme in region 2.
The region 1 consists of Balochistan, Khyber Pakhtunkhwa and Potohar and region 2 includes Sindh and Punjab.
In region 1, the price of CNG has been slashed from Rs 86.77 to Rs 81.95 per kilogramme with a decline of Rs 4.82 per kilogramme.
In region 2, the price of gas has been reduced to Rs 74.83 from Rs 79.20 per kilogramme, registering a decline of Rs 4.37 per kilogramme.
The announcement was made during a joint press conference by Information Minister Qamar Zaman Kaira and Petroleum and Natural Resources Minister Dr Asim Hussain.
Kaira said that price of high octane blending component (HOBC) had been decreased by Rs 11.75 per litre, petrol Rs 10.46 per litre, kerosene oil Rs 5.26 per litre, high speed diesel (HSD) Rs 6.08 per litre and light diesel oil (LDO) Rs 5.02 per litre.
The price of petrol has now come down to Rs 89.51 per litre from Rs 99.97 per litre, HOBC to Rs 113.32 from Rs 125.07 per litre, HSD to Rs 99.69 from Rs 105.77 per litre, kerosene oil to Rs 88.79 from Rs 94.05 per litre and LDO to Rs 86.57 per litre from Rs 91.59 per litre.
He said the government was spending revenue generated through petroleum levy on petroleum products on masses.
Dr Asim Hussain said the Economic Coordination Committee (ECC) had taken a decision to review oil and CNG prices on a fortnightly basis to provide relief to consumers.
"If the current mechanism remains successful, the oil pricing review mechanism of weekly basis would be introduced," Hussain said, adding that the government had also fixed prices of CNG at 60 percent parity of petrol after consultation with All Pakistan CNG Association.
He said that power consumers would also get relief following decrease in oil prices.
The minister said the government had also decided to identify the volume of subsidy in separate head in gas bills.