The National Oil and Gas Regulatory Authority OGRA on Thursday has recommended the government to reduce the price of petroleum products by 5 to 6 percent for the month of September 2018.
OGRA has sent a summary to the government in which it proposed to reduce the price of petrol by Rs2 per litre and Rs6 per litre for high-speed diesel, the authority has also recommended reducing the price of kerosene oil by Rs0.30 per litre and Light Diesel Oil (LDO) by Rs0.70 per litre.
According to the sources, the summary sent to the Ministry of Energy (Petroleum division) the OGRA has recommended reduction in all petroleum products for the month of September.
What to expect?
If the government accepts OGRA’s recommendation, then consumers in Pakistan can expect the existing price of petrol which is Rs95.24 per litre to come down to 93.24 per litre.
It is also possible that the government will reduce the prices of petroleum more than expected or recommended by OGRA because we have witnessed in the past that the previous government used to accept partial recommendation from OGRA and offered more reductions to consumers, similarly when OGRA used to recommend increase in the petroleum prices that government used to implement partially.
The caretaker government has also rejected the ORGA’s summary to increase the prices of various petroleum products by Rs4 per litre in August 2018. In order to keep the prices unchanged, the government had to reduce the GST and HSD from 24% to 23% on various petroleum products.
The new government would take make the final decision on OGRA’s recommendation for the month of September on Friday (Today).