Saifullah Sani
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Inflation-hit consumers are likely to heave a sigh of relief next month as the Oil and Gas Regulatory Authority (Ogra) has recommended up to Rs4.51 per litre decrease in the price of petroleum products, in line with global market trends.
In a summary moved to the ministries of petroleum and finance on Monday, the regulator proposed that oil prices should be slashed from May 1, taking cue from the decrease in international markets.
The new prices will be approved on April 30 following a nod by the prime minister.
According to the Ogra summary, petrol prices are expected to decrease by Rs0.34 per litre, high speed diesel (HSD) which is widely used in heavy transport vehicles and the agriculture sector, is expected to be cheaper by Rs4.51, kerosene oil (SKO) by Rs3.08, light diesel oil (LDO) by Rs0.93 93 and high octane blended component (HOBC) by Rs1.94 per litre.
Commenting on the price cut, an official said that HSD is a major product used across the country in the agriculture and transport sectors and if the cut is approved by the prime minister it would likely result in lowering of inflation.
The official added that the government was charging full rate of petroleum levy determined in the budget and therefore it had no grounds to absorb the impact of the decline in petroleum levy.
Once implemented, the price of petrol is expected to come down to Rs107.97. Similarly HOBC will come down to Rs131.14, kerosene to Rs98.07, high-speed diesel to Rs109.34, and light diesel oil to Rs94.13, official sources said.
Commenting on the move, sources in the finance ministry said that the proposed reduction in oil prices is in line with the trend of falling prices in the global oil market.
However, consumers of petrol would find little relief because of the upward trend recorded in the price of petrol in international oil market during the last 15 days.
Possible relief: OGRA proposes significant cut in oil prices – The Express Tribune
In a summary moved to the ministries of petroleum and finance on Monday, the regulator proposed that oil prices should be slashed from May 1, taking cue from the decrease in international markets.
The new prices will be approved on April 30 following a nod by the prime minister.
According to the Ogra summary, petrol prices are expected to decrease by Rs0.34 per litre, high speed diesel (HSD) which is widely used in heavy transport vehicles and the agriculture sector, is expected to be cheaper by Rs4.51, kerosene oil (SKO) by Rs3.08, light diesel oil (LDO) by Rs0.93 93 and high octane blended component (HOBC) by Rs1.94 per litre.
Commenting on the price cut, an official said that HSD is a major product used across the country in the agriculture and transport sectors and if the cut is approved by the prime minister it would likely result in lowering of inflation.
The official added that the government was charging full rate of petroleum levy determined in the budget and therefore it had no grounds to absorb the impact of the decline in petroleum levy.
Once implemented, the price of petrol is expected to come down to Rs107.97. Similarly HOBC will come down to Rs131.14, kerosene to Rs98.07, high-speed diesel to Rs109.34, and light diesel oil to Rs94.13, official sources said.
Commenting on the move, sources in the finance ministry said that the proposed reduction in oil prices is in line with the trend of falling prices in the global oil market.
However, consumers of petrol would find little relief because of the upward trend recorded in the price of petrol in international oil market during the last 15 days.
Possible relief: OGRA proposes significant cut in oil prices – The Express Tribune
