Oil prices jacked up

Tuesday, September 01, 2009

ISLAMABAD - By jacking up the petroleum prices by four to eight per cent, the Oil and Gas Regulatory Authority (OGRA) Monday night added insult to injury of the masses who were already hard pressed under the general price hike that traditionally accentuates in Ramazan.

It is feared that the latest increase in the petroleum products notified by the OGRA on Monday effective from Tuesday September 1, 2009, would impact another 10 per cent increase in the commoners’ routine expenditures, especially food and mobility. The price hike, contrary to the government’s claims of declining inflation, has already increased household expenditures. Low-income people and daily wagers are finding it hard to manage their bread and butter. However, OGRA is bound to adjust the domestic prices of petroleum products with the international crude oil fluctuations after every month as per the standing policy of the government.

OGRA is moving in monthly adjustments as if the related circumstances were all normal despite the fact that a petition against the petroleum prices increase is still pending with the Supreme Court of Pakistan. During the last hearing, the apex court has asked the government to explain the utility of petroleum development levy as well as the incidence of double taxation on the petroleum products. To sheer bad luck of the people, the international crude has improved significantly during the outgoing month, at times crossing $70 a barrel. Consequently, OGRA announced new maximum ex-depot prices of petroleum products effective 01 September, 2009 that increased Supreme Petroleum from Rs 60.46 to Rs 65.26 a litre. Similarly HOBC soared from Rs 77.01 to Rs 80.39 a litre. Kerosene had a jumped up from Rs 57.91 to Rs 60.6, and Light Diesel Oil have surged from 53.27 to Rs 56.96 a litre. According to spokesman of the OGRA, the prices of Motor Spirit, HOBC, Kerosene Oil and Light Diesel Oil (LDO) have gone up by Rs.4.80 per litre or 8 per cent, Rs.3.38 per litre or 4.3 per cent, Rs.2.69 per litre (4.6 per cent) and Rs.3.69 per litre or 6.9 per cent, respectively.

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