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Govt approves cut in oil pricesBy Ahmad Ahmadani
ISLAMABAD: The Finance Ministry has approved a cut of up to Rs 5.61 per litre in the prices of petroleum products as per recommendations of the Oil and Gas Regulatory Authority (OGRA) with effect from April 1.
Sources familiar with the development told Daily Times that the Finance Ministry, after seeking consent of Prime Minister Nawaz Sharif, has decided to endorse OGRA’s recommendations regarding reduction in oil prices for the month of April. The notification of the new prices will be issued on March 31 under a monthly review mechanism.
“The decision of decrease in the petroleum prices has been made in the wake of declining crude oil prices in the Gulf market. The prices in the international market have dropped by $3 per barrel in the recent days. Upward trend in the value of Pakistani rupee is also a factor,” a senior official at the Finance Ministry told Daily Times. He said that OGRA has already included full component of the petroleum levy in its recommended new oil prices.
The OGRA, on March 28, had sent a summary to the government to decrease the prices of petroleum products by up to Rs 5.61 per litre. The regulator had recommended a cut of Rs 1.72 per litre in prices of petrol, Rs 4.66 per litre in high octane blended component (HOBC), Rs 2.90 per litre in high speed diesel (HSD), Rs 5.61 per litre in kerosene oil, and Rs 5.16 per litre in light diesel oil (LDO).
The new prices are likely to stay at: petrol Rs 108.31 per litre, HOBC Rs 136.57 per litre, HSD Rs 113.85 per litre, kerosene oil Rs 101.15 per litre, and LDO Rs 95.06 per litre with effect from April 1.
Courtesy www.dailytimes.com.pk