Change in oil price formula urged

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) on Saturday urged the Oil and Gas Regulatory Authority (OGRA) to change POL price fixation formula, as fortnightly change was affecting the estimated cost of doing business and hitting the industry.

LCCI President Mian Tariq Misbah questioned why were the changes in international prices of oil not reflected in the national POL prices. He expressed hope that OGRA would ensure passing on of some benefits to general consumers whenever there was ample dip in the international market.

He said the government should support the industry when oil prices increase in the international market and bear some burden.

“A representative of LCCI should be taken on the Board which reviews POL prices and approves the summary to be submitted to the government for final endorsement,” he urged.

OGRA Member (Oil) Zain ul Abideen Qureshi said the country follows the oil price mechanism of the Gulf Market. “The prices are associated with the dollar rate, and its fluctuation affects the oil prices.” He said that 60 percent of the local demand was being met via imports.