Business

Ogra drops petrol-bomb on the nation

Prices of petroleum products are raised by up to Rs7 per litre in the biggest single-time increase in years.

Zia Khan November 01, 2010

ISLAMABAD: The prices of petroleum products were raised on Sunday by up to Rs7 per litre in the biggest single-time increase in years, a decision that can intensify public anger against the government already being blamed for failing to curb inflation.

A notification issued by the Oil and Gas Regulatory Authority (Ogra) says the increase was to match a similar trend in the international market during the month of October.

The highest raise was in the prices of high octane blending component (HOBC), which went up by Rs7 per litre from Rs79.56 to Rs86.67. The price of premium gasoline (petrol) was increased from Rs66.99 to Rs72.96, recording an increase of Rs5.97 per litre.

Similarly, light diesel oil will now be sold at Rs66.61, up from the previous rate of Rs62.34 per litre. The price of kerosene has been set at Rs70.95 after an increase of more than Rs5.

The new prices will be applicable from midnight November 1. The Oil and Gas Regulatory Authority is an independent body and reviews prices of petroleum at the end of every month.

The raise comes after several months during which the prices had seen a continuous downward trend.

Ogra spokesperson Syed Jawad Nasim told the media that the authority had no option but to readjust prices upwards because a cash-starved government could not pick up losses by giving subsidies.

He pointed out that the authority had launched an inquiry into reports that owners of fuel stations across the country had already suspended supplies to consumers in anticipation of the raise. “We are probing into it and will penalise those found guilty,” he said.

The international oil prices have been showing upward trends as Brent (London) was traded at $82.25 a barrel and the basket of Opec (Organisation of Petroleum Exporting Countries) rose from $78.71 to $79.26 per barrel last week.

Average Arab light crude oil price stood at $74.39 per barrel during September, which forced the government to announce a nominal cut in prices of petroleum products in line with reduction in the global prices, effective from October 1, 2010.

Published in The Express Tribune, November 1^st, 2010.

COMMENTS (13)

alok | 14 years ago | Reply it is dropping petrol bomb on it self. Remewnber how high crude prices ar $ 147 caused its own demise as than it came down to $ 33 by followup recession.Now pak people will start using passive solar and induction electricity in place of petroproducts finishing their needs. I will request pak brothers and sisters to use free solar passive infinite heat and light energy instead of other costly petroproducts By a solar cooker and like solar passive devices you can get energy at 19 times cheaper cost than LPG and kerosene. So kindly use free infinite green solar thermal and light energy directly by solar cooker , water heater, food dehydrators, water purifiers, distillers, solar windows , swimming pool heater , steam makers etc etc. Come on Pak use this free energy which you get 2 times more than India on per capita basis. Every Pak brother and sister gets 10 million kwh free green solar thermal energy each year as against his or her average total energy consumption of 1000 kwh per year only. Show the way to we Indians and other SAARCian also. I could use my solitary solar cooker to make 6 dishes in last 2 days for lunch as my without wasting any time for cooking or money for energy.

Zuhair | 14 years ago | Reply http://www.brecorder.com/news/br-research/1272:it-is-not-a-petrol-bomb--its-just-another-revision.html This is a more balanced piece in Business Recorder. We need not be angry at Ogra every other time. Need to understand the mechanism first before criticizing.

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Rizwan T Khan | 14 years ago | Reply Revolution Revolution Revolution is the ONLY solution!!! People have to stand up!

farnis | 14 years ago | Reply We have become a nation who only cry instead of trying to find solutions and pressurizing the Govt to mend their ways and if they do not change then to challenge the decision in the Supreme Court. who we have seen acts urgently is case of Public interest. OGRA has a mechanism under which they increase and decrease the prices of Petroleum products, we as the user should also have our own people from the Universities/ Research Think Tanks and others effected by the decision who should be able to analyze this and should discuss this Live on the TV channel without any break in between as this destroys the tempo of the talk and I always have a doubt about the Channel own Policy about the issue when in the middle of the talk when something is going to be said which can solve the problem they say we will have to take a break..Lets now do something and make sure that the Govt is not Conning us in making more money out of us..

Ihsan ur Rehman | 14 years ago | Reply Waqar sb has mentioned we need moreeeeeeeeeeeeeeeeee Insensitive & thick skinned crowd must be punished more.............................

Chris Brown | 14 years ago | Reply What the Tribune here fails to mention that the majority of the share of the Price of Petrol here is Taxes as much as Rs. 40 per liter goes to the govt. If the govt had been sincere about deflating the economy it could easily reduce the tax that goes to it. OMCs barely make any money on their Petrol. They make their profits on selling lubes.

Blizzard | 14 years ago | Reply OGRA WE LOVE YOU!!!!

Mast mula | 14 years ago | Reply Thanxz to Ogar, we want more........................

mehsud | 14 years ago | Reply The sitting government could only soared prices of things without working for extending relief to the masses at large. They want to add each and every penny in pocket of the hard worker in their bank accounts in order to be billionaire of the future. If the ruling elites were taxed properly and were made bound to pay Zakat only then we could hope for better. Taxing the poor and middle class will contribute to price hike and uprising in the fragile state which will struck at the foundation stone of the country.

Jahanzaib | 14 years ago | Reply Agree with Waqar you have elected looters and dacoits on ethinic basis now suffer.

Waqar Ahmed | 14 years ago | Reply This is the price of our ignorance. This is the price of our biased Voting on linguistic basis. This is the price of our spineless souls. This is the price of our beastly silence. Come on OGRA, KESC, PEPCO, SSGC, President, Priminister we are ready to take more We are not a resilient nation we are just insensitive & thick-skinned nation, sorry nation is not the rite word i should rather use people.

Deep Throat | 14 years ago | Reply Aasia,who will pick up the increase if the decision of increase in prices is taken back? Govt? Do you seriously think that Govt can handle it considering the Tax culture in Pakistan. Circular debt in energy sector is already causing shortages i.e load shedding. Do you want a shortage of fuels across the country as well?*

Aasia Sohail Mian | 14 years ago | Reply We condemn the act of OGRA and ask the government to take back the decision in the increase of oil prices.

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