It seems that the increase in prices of petroleum products has become a never-ending phenomenon in Pakistan. Oil and Gas Regulatory Authority (OGRA) has once again proposed a plan to increase the prices of petroleum products in March. The proposed petroleum prices (if approved) will come into effect from March 1, 2017 and will remain effective till March 15, 2017. After this period, the regulator will again review the prices.
The regulator has proposed an increase of up to PKR 17.55/ liter in the prices of petroleum products. According to the summary submitted to the Ministry of Petroleum and Natural Resources, the regulator has proposed an increase of PKR 17.55 and PKR 10.94 in the prices of kerosene oil and light diesel oil respectively. Whereas, OGRA has sought the ministry’s approval to increase the prices of petrol by PKR 2.96/ liter and high speed diesel [HSD] by PKR 2.18/ liter.
Last year, the government has not changed the prices of petroleum products for almost six months, i.e. from May, 2016 to November, 2016. However, the prices of petroleum products are on the rise globally, due to which the government has no option but to shift the burden to the consumers.
It is pertinent to note that during the previous revision that came into effect on February 16, 2017, the government did not change the prices of kerosene oil and light diesel oil in a bid to offer relief to the general public. Whereas, the Ministry of Finance had absorbed the additional burden of PKR 3 billion by not transferring the impact of higher oil prices to the local consumers.
OGRA has only submitted the proposal to the ministry, which is not approved yet. In any case, we’ll continue to track the changing trends of oil prices in order to keep our readers up to date.