ISLAMABAD: Oil and Gas Regulatory (OGRA) has suggested the federal government increase per litre cost of petroleum goods by Rs 15.99 and consumers are likely to face an increase of up to Rs 5.19 per litre in fuel prices from Wednesday in line with fluctuation in global oil prices.
OGRA recommended to the government on Monday a hike in the price of motor spirit (petrol) by Rs 2.49 and high-speed diesel (HSD) by Rs 5.19 per litre for November. This amounts to a 3.4 per cent increase in the petrol price and 6.5 per cent for HSD. HSD has widely used in transport, power and agriculture sectors.
Earlier, compressed natural gas (CNG) used to be the alternative fuel for vehicles. However, now LNG is being used in retail CNG outlets, which is not as cheap, and this has resulted in an increase in the demand for petrol. Therefore, the increase in its price will also have a direct impact on the vehicle owners.
The summary has been sent to the federal government. The Petroleum and Finance Ministry will announce the revised rates on Tuesday.
According to a working paper forwarded to the Petroleum Division and the Ministry of Finance, the regulator also proposed an increase of Rs 15.99 per litre (33.3 per cent) in the price of superior kerosene and Rs 12.63 (27.5 per cent) in light diesel oil (LDO).
The final decision will be made following approval of Prime Minister Shahid Khaqan Abbasi. It is pertinent to mention that the federal government had increased the prices of petroleum goods by Rs 4.00 per litre.
