With focus on consumers, OGRA opposes increase in oil prices

Summary shows prices may rise up to Rs5.57 per litre from October.

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra), which monitors the oil and gas industry, has suggested that the government should not pass on to consumers the impact of increase in international oil prices next month, and instead revise the petroleum levy to provide some relief.

Ogra proposed this in an oil price revision summary sent to the petroleum and finance ministries. According to the paper, prices of petroleum products are expected to rise up to Rs5.57 per litre from October in the wake of higher oil prices in the global market and rupee depreciation against the dollar.

According to experts, consumers will be facing a hike in inflation if the government increases oil prices from next month.



However, sources were of the view that the finance ministry could oppose Ogra’s proposal at a time when it was increasingly focusing on boosting revenue collection. Nevertheless, the final decision will be taken by the prime minister.

The government will issue a notification of new prices only after the premier’s approval.

According to the summary, the price of high-speed diesel, which is mostly used in cargo and passenger vehicles as well as in agriculture, is likely to go up Rs2.63 to Rs114.89 per litre from existing Rs112.26.

Petrol price may be increased by Rs5.45 to Rs114.58 per litre compared to current price of Rs109.13.

The price of kerosene oil, which is consumed for cooking in remote areas where liquefied petroleum gas is not readily available, could be increased by Rs2.14, taking it to Rs108.13 per litre against existing Rs105.99.

Consumers of light diesel oil, which is mainly used for industrial purposes, may face a hike of Rs2.81 to Rs101.24 per litre from Rs98.43.

The price of high octane blending component, used in luxury cars, is likely to rise Rs5.57 to Rs143.90 per litre compared to existing Rs138.33.

The price of JP-1 may rise Rs2.13, JP-4 Rs3.06 and JP-8 Rs2.12 and reach Rs96.42, Rs89.52 and Rs96.07 per litre respectively.

Published in The Express Tribune, September 28^th, 2013.

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