OGRA proposes reduction in petroleum prices

The Oil and Gas Regulatory Autho­rity (Ogra) on Friday recommended the government to reduce oil price for October 2019 under the monthly price revision.

As per the details, OGRA has sent a summary to the Petroleum division suggesting that the government should reduce the price of petrol by Rs 2.55 per litre.

The summary also proposed a reduction of the price of high-speed-diesel by 3.23 per litre and Rs2.41 per litre for the price of light diesel oil.

However, the oil and gas industry regulator has proposed an increase of Rs1.19 per litre in the price of kerosene oil.

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Based on OGRA recommendations, if the suggestions are accepted, the price of petrol will come down to Rs 110.69 per litre from Rs113.24 per litre.

Similarly, the price of diesel will go down to Rs 127.14 to Rs123.91 per litre whereas light diesel oil’s price will fall down to Rs89.48 per litre from the existing Rs91.89.

Pakistan after the deal with Saudi Arabia has been receiving monthly oil supplies worth $275 million on deferred payments since July 2019. Pakistan will acquire the oil credit facility to the tune of $9.9 billion over the next three years.

It is worth noting here that the government is currently charging 17% general sales tax (GST) on all petroleum products. Besides the 17% GST, the petroleum levy ranging from Rs14 to Rs18 per litre is being charged on petrol and diesel and Rs3-6 per litre on kerosene and light diesel oil.

The recommendations from OGRA came in the consideration of falling oil prices in the international market.