Lube prices continue surge in Pakistan

The All-Pakistan Lubricants Manufacturers Association (APLMA) claimed that prices of lubricants would further surge by Rs14 per liter (US$0.33) as a fresh increase of Rs11 per liter (US$0.26) in lube base oil prices had been made by the Attock Refinery Limited (ARL). During the last six months, lube base oil prices have surged by Rs56 (US$1.30) per liter. Base oil is the main raw material used in the manufacture of lubricants. From July 10, 2007 to June 2, 2008, base oil prices here have surged by at least Rs56 (US$1.30) a liter while lube base oil prices increased by at least 12 times between February 1 and June 2. APLMA Chairman Mian Zahid Hussain said that lubricants prices have almost doubled during the last year, and the only way to reduce its prices was abolishing various duties and taxes as there was a 10% excise duty and 15% sales tax on lubricants. According to a petroleum dealer, Chevrons Delo Gold diesel engine oil (four liters) is now priced at Rs1,262 (US$29.30) against Rs986 (US$22.89) in October 2007. (July 14, 2008)