OGRA proposes reduction in petroleum price, summary awaits PM's approval

ISLAMABAD: As the international price on petroleum products has lowered, the Oil and Gas Regulatory Authority (OGRA) has put forth a proposal to reduce prices of all the major POL products in the country.

In the view of declining petroleum prices globally, the recommendation was put forward to pass on the benefit of lower prices to Pakistani consumers with relative stability in exchange rate.

A summary for petroleum price revision for the month of September has been sent to the Ministry of Finance and after the Prime Minister’s approval, the adjusted price will be announced for the public, a senior government official said.

In accordance with the existing rate of general sales tax and petroleum levy, Ogra has suggested the new ex-depot high-speed diesel (HSD) price at about Rs106 per litre, down by about Rs6.50 per litre.

Similarly, the ex-depot petrol price has been proposed at about Rs93 per litre, down by Rs2.23 while kerosene price is likely to recede by about 70-paisa per unit to Rs83.25 per litre.

Whereas, the ex-depot price of light diesel oil has been estimated to increase by about 70-paisa per litre to Rs 76.05.

On July 7, the caretaker government decided to reduce petroleum prices in order to provide relief to the general public.

The then federal cabinet decided that sales tax rates would be reduced from 17% to 12% for Motor spirit and Kerosene Oil, from 31% to 24% on High Speed Diesel and from 17% to 9% on Light Diesel Oil.