Islamabad: The beleaguered government has been fortunate to relief the masses ahead of budget and general elections, as the oil prices downward rally in the global markets gave it opportunity to relief the masses and cash in on their votes.
It will be a good opportunity for the government to pass on the impact of global oil prices trend and control the inflation and price-hike at the gross root level as Oil and Gas Regulatory Authority (OGRA) proposed massive decrease in the prices of petroleum product prices up to Rs. 13.24 per liter for month of June 2012.
OGRA has sent summary to the government with the recommendation to cut down the oil product prices by Rs. 13.24 per liter from June but the decision will be taken by the Ministry of Finance today, sources in industry said.
The suggested reduction on retail prices of various products are High Octane Blended Component (HOBC) by 9.7 percent or Rs 13.24 per litre, Petrol by 4.6 percent or Rs 4.71 per litre, High Speed Diesel (HSD) by 5.3 percent or Rs 5.64 per litre, Light Diesel Oil (LDO) by 6 percent or Rs 5.84 per litre, Kerosene Oil by 6.9 percent or Rs 6.88 per litre.
At present HOBC price is Rs 135.81 per litre, petrol Rs 103.36 per litre, HSD Rs 107 per litre, Light Speed Diesel Rs 97.43 per litre and Kerosene Oil Rs 99.95 per litre.
Despite the suggestions of the OGRA, the government can retain the prices of petroleum products on current level for next month in order to generate extra revenues through Petroleum Levy (PL), which might be difficult steps for the government as it had taken the same step in the past with lots of criticism by media and political rivals.