ISLAMABAD: The government has decided to reduce the POL prices by up to Rs11.75 per litre for the next fortnight to be effective from tomorrow (June 16). It has also decided to decrease the CNG prices by Rs7.50 per kg, sources in the Ministry of Petroleum and Natural Resources told The News.
But Dr Asim Hussain, Federal Minister for Petroleum, while talking to The News, said that the government had decided to reduce the price of petrol by over Rs10 per litre and CNG by Rs6 per kg, claiming that the government for the first time will pass the full impact of steep reduction of POL prices in the international market to end consumers. This will bring relief to the inflation-stricken masses, as a reduction in the POL prices will help curtail inflation, the minister claimed.
Sources said the finance ministry wanted to impose more tax on some of the POL products and pass on less relief to end consumers, but Dr Asim Hussain confronted the top functionaries of the finance ministry and managed the full relief for consumers.
According to the final working, which has been agreed to even by the Finance Division, the price of motor gasoline (Petrol) will be reduced from June 16 by Rs10.46 per litre to Rs89.51 per litre from Rs99.97 per litre.
The price of HOBC will come down by Rs11.75 per litre from Rs125.07 to Rs113.32, kerosene oil by Rs5.26 per liter from Rs94.05 to Rs88.79, High Speed Diesel by Rs6.08 per liter from Rs105.77 to Rs99.69 and Light Diesel Oil (LDO) by Rs5.02 per liter from Rs91.59 to Rs86.57.
Earlier, the government and CNG Association of Pakistan reached an agreement to increase the petrol parity price of CNG to 60 percent from 55 percent that will stay for the whole year. The increase in Gas Infrastructure Development Cess (GIDS) on CNG, which Parliament has passed in the federal budget for 2012-13, will also be included in the 60 percent of petrol price. According to Dr Asim Hussain, the price of CNG will be at 60 percent of the petrol parity price that will also include the GIDS.
Under the agreement reached between the government and CNG Associations, the above parity will be maintained in pursuance of existing CNG price computation formula approved by Ogra.
The load management of CNG will also be reduced by 8 hours - two full days and 16 hours instead of three days - with effect from June 16, 2012. The agreement will be maintained for one year commencing June 16, 2012.