POL prices likely to be slashed

ISLAMABAD: Owing to reduction of oil prices in international market, the Oil and Gas Regulatory Authority (Ogra) has suggested to the government to cut the prices of petroleum products by 5.8 percent a litre for September 2019.

The regulatory authority has suggested that prices of high speed diesel may be reduced by Rs7.67/litre (or 5.79 percent), petrol by Rs4.59/ litre (or 3.89 percent), light diesel oil (LDO) by Rs5.63/liter (5.77 percent) and kerosene price should be reduced by 4.27/litre (or 4.11 percent) for the next month.

Since July 2019, Pakistan started 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. The Brent oil price in international market on August 30 was recorded at $60.14 per barrel, which was $64 per barrel on July 30. Earlier, in April and June, it was hovering near $72/barrel. A senior official told The News that the government may fully implement the recommendation of Ogra, the reason being the high expectation of declining oil prices in the international market and comparatively stable rupee against the US dollar.

Ogra has forwarded the summary to the Ministry of Energy (Petroleum Division) that recommended revision in oil prices. If the government accepts this recommendation, diesel price would go down from existing Rs132.47 to 124.80/litre; petrol to 113.24/litre from the current cost of Rs117.83/litre. Besides, light diesel oil (LDO) price would come down to Rs91.89/litre from current price of Rs97.52/liter and kerosene from Rs103.84 to Rs99.57/litre. The government will take the final decision on the Ogra’s recommendation on Saturday.