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Tuesday 29 April 2014

OGRA recommends reduction in petroleum prices.

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) recommended on Monday reduction in prices of all petroleum products from May 1.
Informed sources said Ogra had sent a summary for revision in the prices to Finance Minister Ishaq Dar and Petroleum Minister Shahid Khaqan Abbasi who are expected to take a decision in this regard on Wednesday.
They said Ogra was expecting significant reduction in oil prices in the first half of the current month. However, some appreciation of dollar against rupee and a rising pricing trend in the international market over the past 10 days dashed those expectations.
Therefore, Ogra has suggested a minor reduction of 34 paisa per litre in the price of petrol. With the reduction the price would come down from the exiting Rs108.31 to Rs107.97 per litre.
The regulator has proposed a reasonable reduction of Rs4.51 per litre in the price of high speed diesel which is mostly used for tube-wells and majority of the freight and public transport vehicles. Its price would be reduced from the existing Rs113.85 to Rs109.34 per litre.
The price of kerosene, the poor man’s fuel mostly used in rural areas, is estimated to drop by Rs3.08 to Rs98.07 from Rs101.15 per litre.
Likewise, the price of light diesel oil has been estimated to come down to Rs94 from Rs94.93 per litre with a reduction of 93 paisa per litre.
The price of high octane blending component has been estimated to drop by Rs1.94 to Rs133.08 form Rs134.63 per litre.
An official said this reduction had been worked out on the basis of maximum petroleum levy permissible under an act of parliament and currently being charged to consumers in full.
Apart from Rs6 to Rs14 per litre petroleum levy, the government also charges 16 per cent general sales tax on the prices of all oil products.

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