The Oil Companies Advisory Committee (OCAC) raised the oil prices in the range of Rs 0.95 to Rs 2.73 per liter effective from Wednesday because of rising crude oil prices. The OCAC held its fortnightly meeting on Tuesday to review the prices of the petroleum products. The prices would be effective from February 2. Though the OCAC gave no reason for the rise in oil prices, analysts were of the view that prices are still on higher side in the international markets and companies have no alternative to raise prices.

Moreover, the government has allowed the oil price hike to bridge the revenue shortfall.

The OCAC on December 15, 2004 raised the prices by as much as 7.5 percent after seven months freeze, while they again raised prices by almost 2.5 percent on January 1, the prices for the second fortnight remained unchanged.

The government during the last seven months suffered a loss of nearly Rs 32 billion in oil surcharges or petroleum development levy and Rs 9 billion in the shape of difference paid to oil marketing companies to freeze the oil prices.

THE FOLLOWING ARE THE OIL PRICES IN RUPEES PER LITER:

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Product        New    Old   Change

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Motor spirit  42.39  40.39    2.00

High Octane   47.32  44.59    2.73

Kerosene      27.04  26.04    1.00

Light diesel  24.33  22.92    1.41

High Speed

Diesel        27.16  26.21    0.95

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Copyright Business Recorder, 2005