Ogra suggests hike in diesel, LDO prices

By Israr Khan
|
January 31, 2020

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has recommended to increase the prices of diesel and Light Diesel Oil (LDO) by Rs2.47 and Rs1.1 a litre respectively for February.

However, it recommended a reduction of Re0.06 and Re0.66 a litre in the prices of petrol and kerosene respectively. Interestingly, the Brent Oil price on the international market has reduced by almost $10/barrel in one month, as on January 30, 2020 its price was $57.45/barrel against $67.45/barrel recorded on Dec 30, 2019. Its price was $62.55/barrel on November 29,$61.15/barrel on October 30, $62.22/barrel on September 27, $60.14/barrel on August 30 and $64/barrel on July 30. Earlier, in April and June, it was hovering around $72/barrel.

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An official said the Ogra had forwarded the summary to the Ministry of Energy (Petroleum Division) which would be then forwarded to the finance ministry for approval. The government would take a decision on the recommendations on Friday (today). In case of acceptance, diesel price will go up from Rs127.26 to Rs129.73/litre and of LDO from Rs84.51 to Rs85.61/litre, while the petrol price will remain almost the same and that of kerosene will come down from Rs99.45 to Rs98.79/litre. It is also worth mentioning that since July 2019, Pakistan has been receiving monthly oil supplies worth $275 million from Saudi Arabia on deferred payment. Under this arrangement, Pakistan would get this oil facility to the tune of $9.9 billion over next three years.

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