The federal government on Friday hiked price of petrol by Rs25.58 to Rs100.10 per litre for the month of July 2020. The government had provided relief to during the COVID-19 pandemic almost two months ago, when petrol prices were significantly reduced. The price of diesel has gone up to Rs101.46 per litre from the existing Rs80.15, relfecting an increase of Rs21.31.
The Oil and Gas Regulatory Authority (OGRA) has directed petrol pumps to maintain a minimum supply of 20 days. In order to ensure the quantities OGRA has asked Hydrocarbon Development Institute of Pakistan (HDIP) to physically inspect the availability of petrol and high speed diesel at depots, retail outlets (petrol pumps) and refineries of all oil companies.
The Oil and Gas Regulatory Authority (OGRA) has recommended a reduction in petroleum product prices. Cut in petrol price by Rs7.06/litre, kerosene Rs11.88/litre and light diesel oil (LDO) price by Rs9.37/litre for June 2020. The regulatory body has, however, suggested that the price of diesel should remain unchanged. If the government accepts the suggestion of the authority, petrol price will come down from current Rs81.58/litre to Rs74.52/litre.
The prices of petroleum products in Pakistan are set for a steep fall — up to 57 per cent. Though a decision would be announced in consultation with the International Monetary Fund (IMF) on Thursday. The Oil and Gas Regulatory Authority (Ogra) has worked out up to 57pc cut in various products’ prices. According to an official, Ogra had calculated about Rs20.68 per litre reduction in the prices petrol.
Gas companies have asked OGRA to increase gas prices while Sui Northern Gas Company (SNGC) has asked for a 100% increase. According to the national regulator, the gas companies have asked for an increase in the 2020-21 financial year, which is next year. SNGC has asked for a Rs670.75 increase per MMBTU , taking their rate to Rs1,334.99 per MMBTU. This would result in a Rs290 billion burden on consumers.
Oil and Gas Regulatory Authority (OGRA) is ready to increase gas prices for the first half of 2020 in order to meet the revenue shortfall. People have already experienced an increase in petrol and gas prices several times till now and once again the domestic users will incur an increase of 191 paisas while for the commercial users there will be a hike of 31 paisas.