ISLAMABAD: Amid a controversy over legal status of profit margins of marketing companies and dealers in Pakistan, the prices of all petroleum products are expected to be increased considerably on Wednesday owing to price fluctuation in the international market and devaluation of the rupee.
An official of the Oil and Gas Regulatory Authority said yesterday the price of petrol was estimated to be increased by Rs2.8 per litre, to Rs104.5 per litre from the existing rate of Rs101.7.
The price of high speed diesel may go up by Rs3.5 per litre to Rs110.26 per litre from its existing price of Rs106.76. The price of kerosene oil has been worked out at Rs99.94 per litre, an increase of Rs3.65.
The price of high octane blending component is estimated to be increased by Rs5.5 per litre to about Rs129 per litre from its existing rate of Rs123.46. The light diesel oil price may go up by Rs3.45 per litre, to Rs95.6 per litre from its current rate of Rs92.17, according to an official at the authority.
He said a working paper on oil pricing will be forwarded to the federal government on July 30, with the request to keep the prices unchanged at the existing level to protect the consumers from a general price hike and increase in the cost of transportation just before Eid ul Fitr.
He said that ahead of every Eid the transporters increased their rates, but any rise in the prices of petroleum products now would provide them with a justification to do so. Any hike in the prices of petroleum products at this juncture, therefore, would create problems for the government.
Meanwhile, a crucial question of law has arisen over the size of the profit margins allowed to supply chain players, particularly petroleum dealers and oil marketing companies.
Some officials in the petroleum ministry believe the government has allowed the companies and dealers to draw higher profits for two months without any legal cover.
They say the profit margins allowed to companies and dealers should have been cut down two months ago but because that did not happen the consumers should be given relief now.
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