Prices hike by Rs 3.50 per litre, Oil prices up in Asian trade

ISLAMABAD: Petrol price has been hiked by Rs 3.50 per litre as a result of an upward revision in the rates of petroleum products announced by the government on Sunday. The new prices will be effective from June 1.

Federal Minister for Finance, Ishaq Dar made the announcement at a press conference here according to which the price of petrol was raised by Rs3.50 per litre.

He, however, said that Prime Minister Nawaz Sharif announced a subsidy of Rs60 million for petroleum products in a bid to provide relief to the consumers.

He added that the government has decided not to increase the POL prices as per the recommendation of Oil and Gas Regulatory Authority (OGRA). OGRA had proposed to raise the prices of petroleum prices by up to Rs13 a litre.

Ishaq Dar said that after the upward revision in POL prices, petrol will be available at Rs77.79 per litre; High Speed Diesel at Rs87.12; Light Diesel Rs 61.67; Kerosene Oil Rs64.94 and; High Octane Blending Component (HOBC) at Rs83.81.

Singapore: Oil prices edged higher Friday following a mixed US petroleum report that showed a healthy decline in crude and gasoline reserves but a rise in oil production that could aggravate the global supply glut.

US benchmark West Texas Intermediate (WTI) for July rose 53 cents to $58.21 and Brent crude for July gained 43 cents to $63.01 in afternoon trade.

Daniel Ang, investment analyst at Phillip Futures in Singapore, said in a commentary that Thursday´s US Department of Energy petroleum report “showed a mixed sentiment as the bearish production increase was offset by a bullish inventory decrease”.

“As a result of this, we were seeing the bulls and the bears fighting fiercely”.

The report showed US commercial crude inventories fell 2.8 million barrels to 479.4 million in the week through May 22, while gasoline stockpiles fell 3.3 million barrels.

But the DoE also reported a rise in US crude production last week, by 304,000 barrels per day to 9.57 million.

Dealers have been hoping a slowdown in US output, and increased demand during the summer driving season, could whittle down the huge global supplies that were a key reason for the collapse in prices of more than 50 percent between June 2014 and January this year.

Ang said investors are awaiting the release of the second reading of US first-quarter gross domestic product later Friday for clues about demand in the world´s biggest economy.