OGRA proposes up to Rs6 per litre increase in petroleum prices

Authority warns speculations over prices may result in panic buying, shortages

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has recommended an increase in the price of petroleum products by up to Rs 6 per litre for the remaining half of the ongoing month.

According to sources, OGRA, in its oil prices summary, proposed to jack up petrol price by Rs5 per litre and high-speed diesel (HSD) by Rs6 per litre for the next fifteen days.

The final decision in this regard will be taken by the Ministry of Finance in consultation with the prime minister (PM). “If the PM grants approval to raise prices then the masses will find a new wave of inflation as essential commodities and transport fares get expensive, which will destabilise their monthly budget and overall economic standing,” sources said.

They added that the government can maintain oil prices at the current level if it decreases levy and taxes already imposed on oil prices.

Profit also learnt that at present petroleum levy (PL) of Rs12.53/litre is imposed on the petrol price and Rs12.65/litre on the price of HSD.

At present, petrol is available at Rs111.90/litre, HSD at Rs 116.08/litre, Light diesel oil (LDO) Rs79.23/litre, and kerosene oil Rs 80.19/litre.

On the other hand, a spokesman of the OGRA has said that speculations regarding oil prices may result in panic buying and shortages, which should be avoided.

Meanwhile, local media reports state that the government may have to increase the electricity tariff for consumers two times before December, in addition to making monthly fuel price adjustments and diverting substantial funds from taxpayers’ money to the power sector, to keep the International Monetary Fund (IMF) programme going, according to sources.

Background discussions with government officials suggested the exact sizes of and schedule for tariff increases and disbursement of enhanced subsidy payments would be taken up by the Economic Coordination Committee (ECC) of the Cabinet on Wednesday. And decisions in this regard would have to be finalised within the current month.

 

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