Ogra argued that since a special parliamentary committee constituted by the prime minister as part of negotiations on the 20th constitution amendment had on Feb 29 “decided to keep the HSD prices unchanged till June 2012”, the increase of Rs4.70 per litre its price should not be passed on to consumers. - File photo

ISLAMABAD, March 29: Estimating an 8.2 per cent increase under the price formula, the Oil and Gas Regulatory Authority (Ogra) has advised the government to keep prices of petroleum products unchanged for next month to comply with a decision of the special parliamentary committee, which warned of unrest if prices are raised.

Sources told Dawn that in its monthly advice for adjustments in prices of petroleum products, the oil and gas regulator had also advocated a change in the existing pricing mechanism from monthly to quarterly basis to provide relief to the public at large.

And in view of increasing price trend in the international market, the government should also arrange import of petrol through long-term contracts to secure some savings, it said.

At the same time, it advised the government to probe higher ocean losses on import of petroleum products that were noted on the higher side and needed to be set at a reasonable level while backlog of price differential should not be paid to refineries unless verified through a proper audit.

Under the pricing formula in vogue, Ogra has worked out the new price of high-speed diesel for April at Rs108.16 per litre – a rise of Rs4.70 per litre or 4.5 per cent, over the existing price of Rs103.46.

The price of petrol (motor spirit) has been proposed at Rs105.68 per litre against the existing rate of Rs97.66, showing an increase of Rs8.02 per litre or 8.2 per cent.

The price of kerosene has now been estimated at Rs101.69 per litre -- an increase of Rs5.29 per litre or 5.5 per cent over the current rate of Rs96.40

The price of high octane blending component (HOBC) has been worked out at Rs135.81 per litre against Rs126.87, up by Rs8.94 per litre or 7 per cent while light diesel price has been estimated at Rs98.74 per litre, showing an increase of Rs5.45 or 5.8 per cent per litre from existing price of Rs93.29. The prices of jet fuels (JP-1 and JP-8) have been estimated to go up by 3.3 per cent and 4.3 per cent to Rs90.79 and Rs90.49 per litre, respectively.

However, Ogra argued that since a special parliamentary committee constituted by the prime minister as part of negotiations on the 20th constitution amendment had on Feb 29 “decided to keep the HSD prices unchanged till June 2012”, the increase of Rs4.70 per litre its price should not be passed on to consumers.

It further argued that since the government had already collected higher taxes on petroleum prices this year than last year, the required increase in the prices of petrol, light diesel and kerosene should also be absorbed in the petroleum levy to avoid public backlash.

Ogra also contested a decision of the Economic Coordination Committee to pass up to Rs1.89 per litre increase required for recovery of Rs350 million payable to Parco refinery as freight equalisation margin on provisional basis, saying it should not be allowed on the basis of un-audited account.