New Oil Prices: OGRA Suggests Cut In Petroleum Prices—Kerosene and Light Diesel will Increase – Research Snipers

New Oil Prices: OGRA Suggests Cut In Petroleum Prices—Kerosene and Light Diesel will Increase

Yesterday: announced by Oil and Gas Regulatory Authority (OGRA) Pakistan, it has proposed new oil prices to the government cutting on few petroleum including High Speed Diesel, Regular Petrol. But increasing the prices of Kerosene Oil and Light Diesel.

The summary was submitted to Ministry of Petroleum and Natural Resources (MPNR) and to Ministry of Finance for approval in which OGRA proposed price cut of petrol by 4.53% and High Speed Diesel by 3.32%. OGRA has also suggested rise in the prices of Kerosene by Rs. 11 per litre and of Light Diesel by Rs. 7 per litre.

If the government accepts this proposal by OGRA the new oil prices would be;

ProductOld PriceNew Price
PetrolRs. 72.80Rs. 69.50
High Speed DieselRs. 81.40Rs. 78.70
Light Diesel OilRs. 44Rs. 51
Kerosene OilRs. 44Rs. 55

In May OGRA proposed the price change to government which was rejected. OGRA recommended the price cuts in both Petrol and High Speed Diesel by Rs. 1. Government wasn’t interested to provide low price benefits to consumers.

Moreover, OGRA proposed price cuts in June which government also rejected and applied their own prices. OGRA had a suggestion of cut in Diesel by Rs. 3.31 per litre and in Petrol by Rs. 2.43 per litre. And rise in Kerosene Oil by Rs. 13.54 per litre and LDO by Rs. 9.28 per litre.

Government rejected the summary and only reduced Rs. 1.60 in HSD and Rs. 1.20 in Petrol. Government argued that it has to meet the shortfall of Rs. 110 billion that government is already providing in subsidies of petroleum products.

During May and June government supposed to decrease the prices of petroleum products but instead of price cuts it imposed increment in GST on HSD by 5% and Petrol by 4%.

The government is charging 34.5% GST on High speed diesel and 19.5% GST on Petrol. Government will announce their decision on new OGRA’s summary on Friday.