PM rejects raise in POL prices

ISLAMABAD: Prime Minister Nawaz Sharif has rejected a summary to raise petroleum prices, so the rates of POL products will remain unchanged for July 2015, just ahead of the upcoming Eidul Fitr.
“The petroleum prices for the month of July 2015 will not be changed and continue to remain at the level they were in June 2015,” the Finance Ministry stated here on Tuesday.
The prices of petrol will remain at Rs77.79 per litre during July this year. The price of High Speed Diesel (HSD) will stay at Rs87.12 per litre with effect from July 1, 2015. The price of kerosene will remain at Rs64.94 per litre and HOBC Rs83.81 litre during July this year. The Oil and Gas Regulatory Authority (Ogra) had recommended in its summary to raise petrol prices by Rs4.26 per litre. The Ogra had proposed a reduction in the price of High Speed Diesel by 60 paisas.
“The premier took the decision to keep the prices of POL products unchanged which will cost the national exchequer Rs2.5 billion during July this year,” said the official sources. According to a statement issued by the Finance Ministry, Finance Minister Senator Mohammad Ishaq Dar, who is currently visiting Beijing, in a statement received here said that with a view to facilitate people in the holy month of Ramazan, the decision not to increase the POL prices has been taken as has been announced by the prime minister.
Ogra, it may be mentioned, suggested an increase of Rs7.30 per litre in the price of HOBC, Rs4.26 increase in petrol and Rs0.67 in kerosene but the proposal was not accepted as it would have placed an immense burden on the consumers. So it was decided that the prices of POL items w.e.f 1st of July 2015 shall remain the same as in June.The government will pay a subsidy of Rs2.5 billion in the month of July for providing this relief to the people.