All preparations are underway to drop petrol bombshell on people amid the reports that OGRA has sent summary to Finance Ministry for scaling up petroleum products prices by Rs 3 per liter.
The sources disclosed to this scribe that the regulator (OGRA) has forwarded working paper regarding oil prices for 15 days to the Ministry of Petroleum & Natural Resources and recommended upward revision in the prices of petroleum oil and lubricants (POL). They said federal cabinet to be chaired by the Prime Minister (PM) Nawaz Sharif, would take final decision before the start of March. “The government will announce its decision about the future per litre prices of POL products today (Tuesday), which will be effective across the country,” the sources said.
According to OGRA’s working paper, the sources said the price of the price of kerosene oil (SKO), used for cooking purposes in remote areas where liquefied petroleum gas is not readily available, may face a hike of Rs 17.55 per litre, which would take the price to Rs 60.80 per litre from the existing Rs 43.25 per litre.
Similarly, the Light Diesel Oil (LDO), mainly used for industrial purposes, may record increase of Rs10.94 per litre, meaning the price will go up from Rs 43.34 to Rs 54.28 per litre. Also, the consumers of the High Speed Diesel (HSD), which is mostly used in the transport and agriculture sectors, may face a hike of Rs 2.18 per liter, which would take the price to Rs 82.66 per litre from the existing Rs 80.48.
Similarly, petrol prices to go up from the existing Rs 71.29 to Rs 74.25 per litre, an increase of Rs 2.96. The sources further said that the government has the capability to absorb the impact of the proposed increase in oil prices by adjusting tax rates on petroleum products. However, oil marketing companies (OMCs) have repeatedly asked the government to jack up the prices of petroleum products (POL) apparently to earn inventory gains. They said the OMCs were making all out efforts to convince the government to approve increase in POL prices for fifteen days of March. Official sources at Finance Ministry on the condition of anonymity said that the government would approve hike due to constant demand of the OMCs regarding oil prices. They said increase was likely as crude oil prices in the international market have also witnessed upward revision. “The government is expected to jack up POL prices for 15 days. However, it will raise the oil (POL) prices not in accordance with the recommendations of OGRA, they added.
