Petroleum Division suggests deregulating Kerosene Oil, Diesel rates

The Petroleum Division of the PML-N-led federal government has recommended deregulating Kerosene Oil and Diesel prices, allowing Oil Marketing Companies to fix prices of both petroleum products on their own, ARY News reported. 

According to details, the summary to deregulate the prices of Kerosene and Light Diesel was submitted by the Petroleum Division under the title “Pricing of Petroleum Products”.

The Economic Coordination Committee (ECC) of the Cabinet, in its meeting on 31 July, directed inter-alia to submit a summary to deregulate the pricing of kerosene and light diesel oil.

The Petroleum Division summary has proposed that the pricing of Kerosene Oil (SKO) and Light Diesel Oil (LDO0 may be deregulated.

• No SKO and LDO import without permission of the Government
• Transportation charges may vary from location to location, directly payable by the consumer.
• OMCs to fix consumer prices of SKO/LDO. However, General Sales Tax (GST) and Petroleum Levy are to be applied by the Government.
• Refineries and Oil Marketing Companies (OMCs) shall be bound to market SKO/LDO conforming strictly to the specifications approved/notified by the Government from time to time.

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• Oil & Gas Regulatory Authority (OGRA) regulates the interests of all concerned and monitors the marketing of the two products.