Ogra proposes to cut oil prices by Rs5.87 a litre

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) moved on Monday a summary to the petroleum and finance ministries, recommending reducing oil prices up to Rs5.87 per litre effective from June 1, in line with reduction in global oil prices.

The new proposed price for E-10 gasoline is Rs85.17 per litre, down from its current price of Rs85.91.

The prime minister is likely to approve the summary on Tuesday, but there is a possibility the government may choose to ignore the Ogra proposals and let the oil prices stay at their current levels.

According to documents obtained by The Express Tribune, Ogra has proposed a cut of 74 paisa per litre in petrol price.

The price of high-octane blending component (HOBC) has been proposed to be reduced by 67 paisa per litre, kerosene oil by Rs5.05 per litre, high-speed diesel (HSD) by Rs3.20 per litre, light diesel oil (LDO) by Rs5.19 per litre, JP-1 by Rs5.87 per litre, JP-8 by Rs 5.86 per litre and JP-4 by Rs4.53 a litre.

If the proposed cuts are approved, the new prices of petroleum products would stand at Rs 86.67 per litre petrol, Rs 99.25 per litre HOBC, Rs 84.65 per litre kerosene oil, Rs 94.11 per litre HSD, Rs 83.11 per litre LDO, Rs 80.57 per litre JP-1, Rs80.29 per litre JP-8 and Rs 75.52 per litre JP-4.

Transportation charges have also been revised upwards. Ogra has also allowed an increase of 45 per cent in cartage freight rate effective from May 1 because of the strike by the All Pakistan Oil Tankers Association. Inland freight equalisation margin has been increased by 80 paisa per litre on petrol, Rs1.01 per litre HOBC, 69 paisa per litre kerosene oil, 46 paisa per litre HSD and 22 paisa per litre LDO.

Published in The Express Tribune, May 31^st, 2011.