Petroleum products’ prices to remain unchanged

ISLAMABAD: The government has decided to keep petroleum products’ prices unchanged for the time being as the Finance Division has not been able to take approval of the competent authority [president of Pakistan]. Once they take the approval, new prices will be notified by the division.

Normally, the Finance Division announces oil price at the end of every month for the next month [starting after 12pm], but strangely, this time the decision was taken and announced at 12:15am and was temporary. Not only the petrol stations owners and the consumers remained bewildering that why the decision was not yet taken.

The Finance Ministry released a press statement saying, “The spokesman of the Finance Division has said that considering the special circumstances, the rates of petroleum products would be maintained at the existing level till a decision by the competent authority.”  

Official in the Oil and Gas Regulatory Authority (Ogra) told The News: “Summary has been prepared, Law secretary and Finance secretary will take it to the president for approval.”

It is worth mentioning that the Oil and Gas Regulatory Authority (Ogra) has recommended to the government a reduction of Rs5.07/litre in price of diesel and 3.67 rupees a litre in petrol prices for August 2017. Whereas, the regulator has suggested increase of Rs13/litre in kerosene and 10.01 rupees a litre increase in Light Diesel Oil (LDO).

According to a working paper moved to the ministry of Petroleum and Natural Resources and the Ministry of Finance, Ogra has proposed to reduce petrol by 5.1 percent or Rs3.67 per litre and High Speed Diesel prices by 6.3 percent or Rs5.07 per litre. It also recommended an increase of 29.5 percent or Rs13 per litre in the price of Kerosene and 22.8 percent or Rs10.01 per litre increase in the price of Light Diesel Oil (LDO).

As the government kept the prices unchanged for the time being, so the petrol price will Rs71.30 pet litre, diesel Rs79.90 per litre, Kerosene Rs44 per litre and the price of Light Diesel Oil (LDO) also remain at Rs44 per litre. However, once the government takes the approval of the president, the new prices will be again notified by the Finance Division.