The Oil and Gas Regulatory Authority (Ogra) on Monday recommended to the government up to 8.5 percent increase in different POL products prices for the month of July, it is learnt reliably here.
For the month of July Ogra has recommended 5.5 percent increase in petrol price and about 8.5 percent in HOBC price, an official source in the Ministry of Petroleum and Natural Resources told The Nation.
According to the summary Ogra has advised increasing the price of petrol by Rs 4.26 per liter, while it has advised decreasing the price of diesel by 60 paisas per liter. The price of HOBC is expected to increase by Rs. 7.30 while the price for kerosene oil is expected to increase by 67 paisas.
Earlier increase in the prices of the oil was the discretion of the finance ministry, which they were deciding purely on business bases with Ogra recommendation but now the PM is making the final decisions. Finance Ministry is no more uses its discretionary power in increasing the oil prices without PM approval.
The official said that the Finance Ministry had free hand in the increase of the POL prices and was strictly following the recommendations of the Oil and Gas Regulatory Authority (OGRA) regarding increase in the prices of POL products. As soon the finance ministry would be furnished the summary from Ogra regarding the price increase they would swiftly approve it without asking any question. But this practice obsolete now as the finance ministry can no more directly pass the upward revision in the prices to the consumers and they have to consult the Prime Minister, the official informed. The Prime Minister Secretariat has strictly directed all the ministries that in all the decisions that can hurt the consumers particularly in term of oil and gas, the orders of the PM will be sought and it will prevail.
It is pertinent to mention here that last month the Prime Minister has rejected the proposal of the petroleum ministry regarding raise in gas prices.
In light of the Ogra summary, the Finance Ministry will make the final decision after consulting with the prime minister. According to the global petrol prices Pakistan petrol is still cheaper than India in term of US dollars, in Pakistan the price for the June was 0.76 dollar while in India it was $ 1.13.