OGRA recommends hike in fuel prices for March

ISLAMABAD: In apparent backlash of rising crude oil prices in the international market, the Oil and Gas Regulatory Authority (OGRA) has proposed an increase in petroleum products’ prices to the federal government for the month of March.

According to sources, the regulator has recommended an increment of Rs 3.56 per litre in petrol prices and Rs 6.94 per litre in high-speed diesel (HSD) prices to keep up the trend of hike in crude oil prices in the global market.

Both petrol and diesel are the most widely consumed petroleum products in the country, particularly in agriculture and transport sectors.

The Ministry of Energy (Petroleum Division) received the regulatory body’s summary for the petrol prices for March, on Tuesday.

The new prices will come into effect from March 1, 2018, if the federal government approved the OGRA recommendations.

If approved by the government, the new price of HSD will go up to Rs 88.07 per litre from the current Rs 84.51, whereas the diesel oil will go up to Rs 102.77 per litre from Rs 95.83.

Keeping in view the possible repercussions of increase in fuel prices, the analysts believe it would result in higher inflation since energy is the largest import and most consumed item of Pakistan.