ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) Thursday recommended the government up to 5 to 6 percent reduction in the prices of petroleum products for September 2018.
The Ogra has proposed a reduction of Rs2 per litre in motor spirit (petrol), Rs6 per litre in high speed diesel, kerosene oil by Rs0.30 and Light diesel oil (LDO) by Rs0.70 per litre, it is learnt reliably here.
In a summary forwarded to the Ministry of Energy Petroleum Division, the Ogra has recommended downward revision in oil prices, sources said.
If the government accepts this recommendation, then petrol prices would go down from the existing Rs95.24 per litre to 93.24 per litre.
The regulator has also recommended decrease of Rs 6 per litre or 5 to 6 percent in the price of high speed diesel. HSD is widely used in transport and agriculture sector. With this reduction, its price would come down to Rs106.94 per litre from the existing Rs 112.94 per litre. Similarly Ogra has proposed kerosene price reduction by Rs0.30 per litre from existing 75.37 to Rs75.07 per litre
The regulator has also suggested Rs0.70 per litre reduction in light diesel oil prices. If the government accepts the recommendation of the Ogra, its price will go down from existing Rs80.91 to Rs80.21 per litre.
It is pertinent to mention here that the Caretaker government had rejected the Ogra summary for making up to Rs4 per litre increase in the prices of various petroleum products had decided to maintain the prices of petroleum products at the existing level during the month of August 2018.
To keep the prices of petroleum products unchanged the government has reduced GST on HSD from 24 percent to 23 percent, on motor spirit from 12 per cent to 9.5 percent, kerosene from 12 percent to 6 percent, and on light diesel oil from 9 percent to 1 percent.
A minister of the caretaker set up was earlier quoted as saying that they leave the price unchanged and pass the responsibility of price adjustment to next elected government.
For the month of July the caretaker government on June 30 had increased the price of petrol by Rs7.54 per litre taking it to Rs99.50 per litre, diesel by Rs14 per litre taking it to Rs119.3 per litre and kerosene oil by Rs3.36 to Rs87.7 per litre. However, on July 7, the prices were brought down after the Supreme Court took notice of heavy taxes on petroleum products.
The notification issued by the Ministry of Finance, on July 7 said that the price of petrol was reduced by Rs4.26 to Rs95.24 per litre, high-speed diesel by Rs6.37 to Rs112.94, kerosene oil by Rs3.74 to Rs83.96 and light diesel oil by Rs5.54 to Rs75.37.
It is also worth to mention here that the PML-N government at the end of its five-year tenure on May 31 had left the monthly decision of setting new prices of petroleum to the caretaker government and decided that the existing prices may continue till mid-night of June 7, 2018.
The caretaker government on June 11 had increased prices of petrol by Rs4.260 per litre, HSD Rs6.55/litre and Kerosene by Rs4.46 litre and LDO price by Rs6.14/litre.
The government would take the final decision on the Ogra’s recommendation for the month of September on Friday (today).
(This news/article originally appeared in The Nation on August 31st, 2018)