ISLAMABAD - AHMAD AHMADANI - The government has decided to reduce prices of Petroleum Oil and Lubricants (POL) products upto Rs 10.74 per liter for the first 15 days of June while the price of CNG is also likely to witness a decline upto Rs 3 per kg.

Well placed sources in Finance Ministry aware of the developments told The Nation that despite the recommendations of Oil and Gas Regulatory Authority (OGRA) to decrease the prices of POL products upto Rs 13.24 per litre for 1st half of June in line with the reduction of crude oil price in international market, however, the government has decided now to reduce the price of petrol by Rs 3.39 per litre, Kerosene by Rs 5.90 per litre, HSD by Rs 1.23 per litre, while HOBC by Rs 10.74 per litre and LDO by Rs 5.84 per litre for the first 15 days of June.

The price of Compressed Natural Gas (CNG) would witness a decrease by Rs 3 per kg in Khyber Pakhtunkhwa (KPK), Balochistan and from Attock to Jhelum while a decrease in the price of commodity (CNG) by Rs 2.82 per kg in Sindh and Punjab regions would be seen from June 1st.

However, in accordance with the sources, new price for 1st half of June of petrol will stand at Rs 99.97 per litre, HOBC by Rs 125.07 per litre, Kerosene oil by Rs 94.05 per litre while HSD by Rs 105.77 per litre and LDO by Rs 91.59 per litre.

They also informed that with the start of June, the Petroleum Levy (PL) on per litre of petrol would be jacked up from Rs 8.86 to Rs 10, HOBC from Rs 11.84 to Rs 14, while Kerosene oil from Rs 5.15 to Rs 6 and HSD from Rs 4.20 to Rs 8.

It was also learnt that the cash-starved government has also decided to increase the ratio of Petroleum Levy on POL products resultantly increase in PL by Rs 1.84 per litre on petrol, Rs 2.16 per litre on HOBC, 85 paisa on Kerosene oil and Rs 3.80 per litre on HSD.

They said with this increase in PL, over burdened consumers would not get the likely benefit as was recommended earlier by OGRA in its suggestions pertaining the prices of POL products for 1st half of June to the Ministry of Petroleum and Natural Resources (MP&NR), adding, that the Oil and Gas Regulatory Authority (OGRA) on Wednesday recommended the government to decrease the prices of POL products up to Rs 13.24 per litre to be effective from June 1st for only 1st half of June in accordance with the decision of the Economic Coordination Committee (ECC) of the Cabinet.

They further informed that the regulatory authority in its recommendations regarding the prices of POL products suggested the Petroleum Ministry to give a reduction of Rs 13.24 per litre in the price of HOBC, Rs 4.71 per litre in petrol, Rs 5.64 per litre in HSD, Rs 5.84 per litre in LDO and Rs 6.88 per litre in Kerosene Oil. Similarly, with this cut in oil pricing, the per litre price of Mogas (Motor Gasoline/Petrol) was likely to witness a decrease by - 4.6 per cent, HOBC by 9.7 per cent, Kerosene oil by 6.9 per cent while the price of HSD oil was expected to find a decrease by - 5.3 per cent and the per litre price of Light Diesel Oil (LDO) by - 6.0 per cent.

They further said that the money-starved government would generate additional revenue worth of Rs 3 billion by increasing the ratio of PL despite giving a reduction in POL prices for first half of June.

Govt to cut POL prices up to Rs 10.74/litre