Ogra recommends slashing of prices of petroleum products

The Oil and Gas Regulatory Authority (Ogra) on Friday calculated an increase in the price of high-speed diesel (HSD), but it recommended slashing of prices of other petroleum products by up to Rs11.88 per litre for June 2020. In line with the slump in global oil prices and low consumption in the country, the oil and gas regulator has proposed to the government a slight increase in the ex-depot price of HSD by 0.05 paisa per litre.
In case the government approves the recommended price of Ogra, the price of HSD will go up from Rs80.10 to Rs80.15 per litre. The regulator also recommended slashing of ex-depot price of petrol by Rs7.06 per litre.
It proposed to reduce the prices of petrol from Rs81.58 to Rs74.52 per litre for June. Ogra has further tasked the HDIP to physically check the availability of petrol and HSD with all the depots of the Oil Marketing Companies (OMCs), retail outlets and storages of refineries.
The retail outlets across the county be randomly inspected to ensure that sufficient product (petrol and HSD) is available. The task will be completed by June 3. The inspection charges shall be borne by the OMC and refinery concerned. The regulator has written the fourth letter on May 29 to all the OMCs to ensure sufficient supply of petroleum products at retail outlets, and also sought depot-wise sale and stocks data in respect of petrol and HSD for the past three months (March, April and May).
The price of locally-produced kerosene oil was also recommended to be reduced by Rs11.88 per litre. The new suggested price of kerosene oil for the next month is Rs35.56 per liter, which is now Rs47.44 per litre.
The price of light diesel oil (LDO) has been proposed to be slashed by Rs9.37 per litre. In other words, the price cut is suggested from existing Rs47.51 to Rs38.14 per litre.
Ogra has calculated the HSD and petrol prices on the basis of maximum permissible limit of petroleum levy. The price of HSD has been calculated at the last notified PL price at Rs30 per litre and petrol on Rs23.76 per litre.
The government collects PL on both petroleum products. Based on existing 17 percent general sales tax (GST) and import price of Pakistan State Oil (PSO) and last notified petroleum levy, Ogra has revised the prices for the next month.
The summary has been submitted to the Petroleum Division on Friday for formal approval. The government had raised PL on the price of petrol from Rs17.16 per litre in April to Rs23.76 per litre in May. Similarly, the government had increased the PL on HSD by Rs14.51 per litre to Rs30 per litre.