OGRA chairman hints at another price hike in petroleum products

Oil and Gas Regulatory Authority (OGRA) chairman on Wednesday signalled another hike in the prices of petroleum products from March 1, 2022 owing to unprecedented increase in oil prices in the global oil market and value depreciation of rupee against the dollar.

OGRA chairman Masroor Khan while speaking in a meeting of the National Assembly (NA) standing committee on petroleum hinted at another oil price hike from March 1, 2022. He said that the price of oil has increased unprecedentedly in the last twelve weeks. He said the value of the rupee has been decreasing against the US dollar. The masses will bear the additional burden of rise in oil prices, said OGRA chairman.

Responding to a question of MNA Khurram Dastgir, chairman OGRA said that there was no change in the oil price formula while Oil Companies Advisory Council (OCAC) has expressed fear regarding hike in the price of diesel.

Present on the occasion, secretary petroleum Ali Raza Bhutta informed the NA standing committee that import of two LNG cargoes for the month of March 2022 have been cancelled while only one LNG cargo for the March has so far been arranged at high price.

“One LNG cargo is arranged while the second cargo could not be arranged so far,” said secretary petroleum.

The petroleum secretary also informed that construction of a gas pipeline will start soon as dialogue with Russia has been completed in this regard. He also said that two new companies are going to install LNG terminals and these two companies have been allotted land on the port for installation of the LNG terminals. Both companies have fulfilled licence conditions, said secretary petroleum.

Officials of the petroleum division while briefing the NA standing committee informed that one LNG cargo has been arranged at $25 rate through spot purchase.

Barjees Tahir, MNA, said that they were participating in the committee meeting for the last three years but so far no action was reported regarding gas schemes. He said that a project started some three years ago was still pending.

Officials of Sui Northern Gas Pipelines Limited (SNGPL) said that the government has imposed a ban on old and new gas schemes.

Secretary petroleum informed the NA standing committee that the government has been mulling to lift the ban on gas schemes.