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Reducation in prices of petroleum products is recommended by OGRA

30 January, 2015

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ISLAMABAD: The masses are likely to receive some sizeable relief in the form of reduced price of petroleum products (POL) as the Oil and Gas Regulatory Authority (OGRA) has recommended up to Rs14.85 per liter reduction for the month of February in view of declining prices in the international market.

Though the government has imposed 22 percent GST on POL products, yet already burdened masses are expected to receive up to Rs14/litre cut in POL prices from the next month due to declining trend in the price of crude in the international oil market. At present, per barrel price of crude in the global oil market is below $49 per barrel which was recorded some six years back (March 2009).

Reliable sources said that OGRA had moved a summary of POL prices for February to the Petroleum Ministry and Finance Ministry for approval. The government will notify prices after approval of the prime minister and this will take effect from February 1.They said in a working paper sent to the Petroleum Ministry, OGRA recommended Rs14.85/litre reduction in the prices of POL products under monthly POL price review mechanism.

Under the proposed cut in per litre prices of POL products, petrol is to go down by Rs10.75, high speed diesel (HSD) Rs8.8, high octane blended component (HOBC) Rs14.85, kerosene oil Rs12.92, and light diesel oil (LDO) Rs11.84 with start of next month. The sources said if the premier gave a go-ahead the prices of POL products would be made cheaper in the country to provide relief to the public. After PM's nod, petrol would be made available at a cheaper price than the price of Compressed Natural Gas (CNG) during February, they added.

The sources also said that if the premier gave go-ahead petrol would be made available at a price that was registered some seven years back in the country. Even, the per litre price of petrol calculated in CNG value in Balochistan and Khyber Pukhtunkhwa will be lower Rs9 per kilogram and Rs4.5 in Punjab and Sindh provinces respectively, compared to the per KG price of CNG. If the premier gives approval to the recommendations of OGRA, new price of petrol will stand at Rs67.53 per litre, HSD Rs77.43, HOBC Rs77.15, Kerosene oil Rs59, LDO Rs55.66 in the entire month of February, they added.

It is worth mentioning here that consumption of petrol is expected to go further up after likely big reduction in its price. The consumers in Sindh and KPK using CNG may switch to petrol. HSD is mainly used in agriculture and transport sector and reduction in its price will also affect inflation rate and transport charges will also witness cut in the next month across the country.

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