Prices of lubricants may rise

Tag : Lubricants

KARACHI, July 10: After frequent increases in petrol, diesel, CNGand LPG rates, the vehicle owners would have to face another burdenof price-hike in lubricants.

The total annual consumption of lubricants in the country is400,000 tons. Of which the local production is 175,000-180,000tons, and legal imports hover between 20,000 and 25,000 tons. Thereis another production of 5,000 tons from reclaimed oil and the restof the demand is met through smuggled and fake lubricants.

The All-Pakistan Lubricants Manufacturers Association (APLMA)claimed that prices of lubricants would further surge by Rs14 perlitre in the coming days as a fresh increase of Rs11 per litre inlube base oil prices had been made by the Attock Refinery Limited(ARL).

During the last six months, the lube base oil prices have surged byRs56 per litre. Base oil is the main raw material used in themanufacture of lubricants.

From July 10, 2007 to June 2, 2008, the base oil prices surged byat least Rs56 a litre while the lube base oil prices increased byat least 12 times between February 1 and June 2.

APLMA chairman Mian Zahid Hussain was of the view that lubricantsprices have almost doubled during the last one year, and the onlyway to reduce its prices was abolishing various duties and taxes asthere was a 10 per cent excise duty and 15 per cent sales tax onlubricants.

He said as a result of meteoric rise in prices, its impact wasbeing felt on annual sales.