Ogra proposes Rs3 increase in petrol prices

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has recommended to the government to increase the petrol price by Rs3.09 and diesel by 1.40 a litre from April 1, 2016.

Official sources told The News that Ogra has prepared a working paper and has sent it to the Ministry of Petroleum and Natural Resources, proposing the government to increase the petrol prices by Rs3.09 a litre, which is widely used in cars and motorcycles owned by middle class commuters.

The price of high-speed diesel (HSD), mostly used in mass transportation andagriculture, could also be increased by Rs1.40 per litre for the month of April 2016.

Ogra has worked out the proposed increase on the basis of imported oil prices that was provided to the authority by the oil marketing companies. The petroleum ministry will send it to the finance ministry, which will then take approval from the prime minister on it.

It has also proposed an increase of Rs4.67/litre in high-octane blended component (HOBC), Rs4.91/litre in light diesel oil (LDO), which is an industrial fuel and Rs5.64/litre in kerosene oil prices.

If the recommendations of Ogra were approved, the revised prices of petroleum products the consumers will pay for litre petrol will be Rs65.86, high-octane Rs77.35/litre, diesel Rs72.52/litre, light-diesel Rs42.88/litre and kerosene oil would be available for Rs48.89 per litre in the month of April.

A senior independent economist told The News that the authority had recommended this increase to the government; however, it seems that the government may not increase the prices as despite a recent recovery, the Brent crude still remains below 40 dollars a barrel.