Petroleum prices likely to go up by Rs10.5

12 Jan 2015, Nantong, Jiangsu Province, China --- A Chinese worker holds an oil nozzle at a gas station in Nantong city, east China's Jiangsu province, 12 January 2015. China's crude oil imports rose above 7 million barrels per day for the first time in December, reaching record levels as plunging international prices allowed the world's largest importer to fill strategic and commercial reserves. International crude prices are near six-year lows, revisiting levels last seen in the wake of the global financial crisis. While price controls over transport fuels limit the boost to the Chinese economy, the drop has presented an unusual opportunity for China to increase reserves of crude oil at relatively little cost. China imported 7.15 million bpd in December, bringing its full-year crude imports to a record 308 million tonnes up nearly 10 per cent on the year. Some of that additional demand reflects economic growth --- Image by © Imaginechina/Corbis

The Oil and Gas Regulatory recommended on Tuesday a hike in prices of petroleum products by up to Rs10.5.

A summary has been sent to Prime Minister Imran for approval. If approved, the new prices will be applicable from September 16, 2021. Following is what the Ogra recommended

  • Increase in High Speed Diesel price by Rs10.5 to Rs125.53
  • Increase in Petrol price by Rs1 to Rs119.30
  • Increase in Light Diesel price by Rs5.5 to 90.27
  • Increase in Kerosene Oil price by Rs5.5 to Rs92.3

The authorities argued that oil prices in the international market had gone up by $10 over the past month. Ogra said that if the government wanted, it could opt to absorb the increase in petroleum prices by revising the rates of Petroleum Levy and GST.

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