AHMAD AHMADANI
The Oil and Gas Regulatory Authority (OGRA) has worked out an increase of up to Rs 6.75 per litre in the prices of petroleum products, Pakistan Today learnt on Friday.
The sources disclosed to this scribe that the regulator has forwarded oil prices summary to the Ministry of Petroleum & Natural Resources and recommended upward revision in oil prices. However, the final decision would be taken by the cabinet, chaired by Prime Minister Nawaz Sharif before the start of November. They also said that the government would review POL prices on November 15 only because cargoes carrying RON 92 standard petrol had arrived on October 25 in the country.
According to OGRA’s summary, the sources said the consumers of the HSD, which is mostly used in transport and agriculture sectors, may face a hike of Rs 2 per liter, which would take the price to Rs 74.52 per litre from the existing Rs 72.52. Similarly, petrol prices would go up from the existing Rs 64.27 to Rs 66.56 per litre, with an increase of Rs 2.29. The price of Kerosene oil, used for cooking purposes in remote areas where liquefied petroleum gas is not readily available, would rise from Rs 43.25 to Rs 50 per litre with an increase of Rs 6.75.
Likewise, the LDO, mainly used for industrial purposes, may record an increase of Rs 6.40, meaning the price will go up from Rs 43.35 to Rs 49.74 per litre. Also, the price of the HOBC, mainly used in luxury cars, will be announced by the company itself, they added.
“Viewing political pressure, it is expected that Pakistan Muslim League Nawaz government will succumb to political pressure and keep the prices of petroleum products unchanged at the start of November,” official sources said, adding, “The price of imported RON 92 is high to the price of motor gasoline, so ORGA and the government will review the prices of petroleum, oil and lubricant (POL) prices to absorb the impact though the government has the capability to absorb the impact of the proposed increase in oil prices by adjusting tax rates on petroleum products”.
It is worth-mentioning that Pakistan had imported RON 87 petrol, which is a low-quality petrol and was largely abandoned by the world. So, the ECC allowed import of RON 92 standard petrol to the country in order to make the environment cleaner, more hygienic, improve efficiency of vehicles and give good mileage per litre. And, following the approval of federal cabinet’s economic coordination committee (ECC), country is going to replace Research Octane Number (RON) 87 with RON 92 standard petrol. The RON 92 fuel has lower emissions.
