ISLAMABAD: The government on Monday decided to keep petroleum product prices unchanged for October 2019, though the Oil and Gas Regulatory Authority (Ogra) had recommended a reduction of up to 2.6%.
The government tried to justify the decision of not passing price relief on to consumers in a press statement.
“The decision to retain September prices of petroleum products for the upcoming month of October has been taken in view of petroleum prices showing an increasing trend in the international market from mid-September 2019 and the expectation that the prices may remain on the higher side in the month of November 2019,” the statement said.
Earlier, Ogra – the oil and gas industry regulator – had recommended in a summary sent to the Petroleum Division that prices of high-speed diesel may be reduced by Rs3.23, or 2.5%, per litre, petrol by Rs2.55, or 2.3%, per litre and light diesel oil by Rs2.41, or 2.6%, per litre.
However, it proposed an increase of Rs1.19, or 1.2%, per litre in the price of kerosene oil.
But the government did not revise the prices. The price of petrol will remain static at Rs113.24 per litre, diesel at Rs127.14 per litre and light diesel oil at Rs91.89 per litre. The price of kerosene oil will also stay unchanged at Rs99.57 per litre.
Brent crude price in the international market stood at $59.70 per barrel on September 30, 2019, down from $60.14 per barrel on August 31 and $64 per barrel at the end of July.
It is worth mentioning that since July 2019, Pakistan has started receiving monthly oil supplies worth $275 million from Saudi Arabia on deferred payments. Under this arrangement, Islamabad will get $9.9 billion worth of oil over three years.