Govt to not increase prices in accordance with the OGRA recommendations
ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has worked out a hike up to Rs 13 per liter in the prices of oil for the month of April 2017, and forwarded its working paper to the government for final approval.
Sources in OGRA disclosed to Pakistan Today that the regulator has forwarded a working paper regarding oil prices to the ministry of petroleum & natural resources and recommended upward revision in the prices of petroleum oil and lubricants (POL).
The federal cabinet to be chaired by Prime Minister Nawaz Sharif will take final decision before the start of next month of April. “The government will announce its decision about the future per litre prices of POL products on Friday, which will be in effect across the country with the start of next month (April),” the sources said.
According to OGRA’s working paper, sources said the price of the price of kerosene oil (SKO) may face a hike of Rs 13 per litre, which would take the price to Rs 57 per litre from the existing Rs 44/litre. Similarly, the Light Diesel Oil (LDO) record increase of Rs 7.75/litre, meaning the price will go up from Rs 44 to Rs 51.75 per litre.
Also, the consumers of the High Speed Diesel (HSD) may face a hike of Rs 2 per liter, which would take the price to Rs 84 per litre from the existing Rs 82. Similarly, petrol prices to go up from the existing Rs 73 to Rs 75 per litre, an increase of Rs 2.
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 are making all out efforts to convince the government to approve increase in POL prices.
Official sources at the finance ministry, on anonymity, said that the government would approve hike due to constant demand of the OMCs regarding oil prices. They said increase is likely as crude oil prices in the international market have also witnessed upward revision. “The government is expected to jack up POL prices for the month of April 2017. However, it will raise the oil (POL) prices not in accordance with the recommendations of OGRA, they added.
