OGRA proposes a massive decrease in petroleum prices for January 2019

The Oil and Gas Regulatory Authority (OGRA) has proposed a massive decrease in the petroleum prices for January 2019.

Nearly all the petroleum products were included in the summary forwarded to Petroleum Division and Ministry of Finance by the Oil and Gas Regulatory Authority (OGRA) for a sharp decline in the current prices owing to the falling oil prices in the international market. The authority has recommended a decrease of Rs.15.90 per litre in the price of high-speed diesel whereas Rs.9.50 per litre in the price of petrol which is quite significant for the first month of the new year. Other petroleum products such as light diesel oil and kerosene oil are also included in the summary for a decrease of Rs.2 per litre and Rs.0.50 per litre respectively.

The government will take the final decision on the proposal forwarded to them on Monday, 31st December 2018. The current prices of petroleum products in December 2018 are mentioned below:

Petrol: Rs.95.83 per litre
High-Speed Diesel: Rs.110.94 per litre
Light Diesel Oil: Rs.77.44 per litre
Kerosene Oil: Rs.83.5 per litre

If the government accepts the recommendations of OGRA as mentioned in summary, the new petroleum prices would be as follows:

Petrol: Rs.86.33 per litre
High-Speed Diesel: Rs.95.04 per litre
Light Diesel Oil: Rs.75.44 per litre
Kerosene Oil: Rs.83.00 per litre

High-Speed diesel is extensively used in the transportation and agricultural industry across Pakistan whereas kerosene oil is widely used in remote areas for cooking purposes as well as where the gas shortage is a usual problem in winters. However, it’s highly unlikely that the government will recommend the summary as presented by OGRA. A partial approval from the government is expected that would still offer relief to the consumers on the new year. It is worthy to mention here that the government is currently not even charging the standard 17% GST amount on any petroleum products. In a bid to facilitate the consumers, the government also decreased the petroleum prices for December 2018. However, OGRA had proposed a significant increase in the previous month. The prices of high-speed diesel and petrol were recommended to be increased by Rs.2 per litre and Rs.6.21 per litre respectively. But the government decreased the price of both petroleum products by Rs.2 per litre. Currently, the international oil prices have dropped significantly which has led OGRA to forward the summary to the government.

Let’s wait and see what decision government takes in favour of the general public. Stay tuned to PakWheels.com for more updates. Drop your thoughts in the comments section below.