POL prices likely to hike

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DM NEWS
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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

By Ali Imran

ISLAMABAD: The petrol and diesel prices are likely to be hiked again on September 15 as the Economic Coordination Committee (ECC) approved increasing the margin of petroleum dealers and oil marketing companies (OMCs).
The caretaker government approved hiking the sale margin of petrol and diesel by Rs3.5 per litre.
The decision was taken in the session of the Economic Coordination Committee (ECC) chaired by Caretaker Finance Minister Shamshad Akhtar today, The committee approved hiking the petrol and diesel sale margin for OMCs and dealers.
It has been decided to increase the petrol and diesel margin by Rs1.87 per litre for OMCs. In the first phase, the sale margin will be increased by Rs0.47 per litre for OMCs on September 15.
Moreover, a Rs1.64 margin hike was approved for the petrol and diesel dealers. However, the margin hike will be implemented in phases. In the first phase, Rs0.41 per litre hike will be implemented for dealers on September 15.
Additionally, the ECC approved a summary to devise a restructuring plan for the national flag carrier Pakistan International Airlines (PIA). The committee rejected the summary for a Rs1.3 billion grant for the national airline.
It is pertinent to mention here that the PIA requested to defer payments to the Federal Board of Revenue (FBR).
The committee directed the State Bank of Pakistan (SBP) and the finance ministry to assist the national airline in devising its financial restructuring plan.
The ECC approved a Rs40 billion supplementary grant for the defence ministry.
On August 31, the caretaker government had increased the price of petrol by Rs14.9 per litre.
The rate of petrol reached Rs305.36 per litre with an increase of Rs 14.9 per litre.
Meanwhile, the price of high-speed diesel (HSD) has been increased by Rs18.44 per litre to Rs311.84.
On August 16, Petrol price were increased by Rs17.50 per litre to Rs290.45, while high-speed diesel was increased to Rs293.40. Prior to this, the then federal government had increased the price of petrol by Rs19.95 per litre on August 1.

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