ISLAMABAD - The government on Wednesday increased petrol price by Rs 4 per liter and high speed diesel by Rs 3 per liter, while keeping the prices of High Octane Blending Component (HOBC) (elite fuel) and kerosene oil unchanged.
Federal Finance Minister Senator Ishaq Dar, announcing the new petroleum prices, claimed the prime minister had not approved increase in the prices of kerosene oil, high octane and light diesel.
In a press statement issued on Tuesday, Ishaq Dar stated that the Oil and Gas Regulatory Authority (Ogra) had proposed Rs 4 increase in petrol price and Rs 6.25 in that of high speed diesel. The Ogra had also proposed an increase of Rs 7.66 in the price of High Octane Blending Component and Rs 1.56 in that of kerosene oil.
The prime minister, however, approved Rs 4 per litre increase in the price of petrol and Rs 3 per litre in that of high speed diesel and decided not to change the prices of high octane and kerosene oil.
The new prices of petrol and high speed diesel will be Rs 74.29 and Rs 86.86 per liter, respectively, from Wednesday (today). The prices of High Octane Blending Component and kerosene oil will remain unchanged as Rs 80.31 per liter and Rs 61.44, respectively.
Interestingly, the price of HOBC does not affect the common man, but petrol and high speed diesel rates directly affect inflation in the country.
HOBC is only used in high-tech cars that a few people in the country afford.
The government has tried to give an impression that it didn’t increase the prices of petroleum products by following the figures proposed by the Ogra.
Interestingly, there has been a slight change in the petroleum prices in the international market due to Yemen unrest, but the government did not lose the chance to increase the prices on that excuse.
Nepra reduces power tariff by Rs2.08 per unit
The National Electric Power Regulatory Authority (Nepra) on Tuesday notified a Rs1.23 per unit decrease in electricity rates for consumers of K-Electric and a Rs2.08 per unit for consumers of all other distribution companies.
The fuel adjustments worth Rs13 billion would be passed on to consumers during the billing month of April 2015. The rate-cut would not apply on those users who consume less than 50 units of electricity per month.
Fuel worth Rs 55.75 billion was spent for the generation of 6.8 billion units of electricity consumed by the users of all Discos apart from those of K-Electric.
The actual fuel cost for January 2015 was determined at Rs9.27 per unit against corresponding determined fuel charges of 11.36 per unit.
It was reported that the highest share of furnace oil-based plants at 45.4 per cent in total power supply was generated at Rs10.26 per unit while 9.42pc generation came from high speed diesel with an average cost of Rs15 per unit, followed by 23.3pc generation from natural gas amounted to Rs4.2 per unit.
Only 13pc generation came from hydropower with zero fuel cost while fuel cost of 5.65pc generation from nuclear power cost came at Rs1.17 per unit.
K-Electric had sold 1.06 billion units of electricity to consumers during the month of December 2014.
Under the automatic fuel adjustment formula National Electric Power Regulatory Authority is required to determine the difference of fuel cost every month and directly pass it on to consumers.