Ogra proposes up to Rs44 cut in fuel prices

Tahir Sherani Published April 29, 2020

The finance ministry will announce the reduced prices if approved by the prime minister. — Online/File

The Oil and Gas Regulatory Authority (Ogra) on Wednesday recommended up to Rs44.07 per litre reduction in the price of major petroleum products for the month of May to share the benefit of lower international prices with the consumers.

In a summary sent to the Petroleum Division, seen by Dawn.com, the authority has proposed a decrease of Rs33.94 to Rs73.31 for the price of high-speed diesel (HSD), a drop of 31.6 per cent from the existing Rs107.25.

It has worked out a decrease of Rs20.68 per litre (down 21.4pc) to Rs75.9 for petrol, which currently stands at Rs96.58.

Meanwhile, Ogra has proposed that kerosene oil's price be cut by Rs44.07 to Rs33.38 per litre, a 56.9pc decline from the Rs77.45 per litre rate that went into effect in late March.

For light diesel oil (LDO), the price has been recommended to be slashed by Rs24.57 (-39.3pc) to Rs37.94 per litre. It costs Rs62.51 at present.

If the summary is approved by the prime minister, the finance ministry will make an announcement about the reduction in petroleum products' prices on Thursday.

The proposed reduction in fuel prices comes as oil prices slumped again on Tuesday amid concern about dwindling crude storage capacity worldwide and fears that fuel demand may only recover slowly once countries ease curbs imposed on economic and social activity to combat the coronavirus pandemic.

Oil prices have fallen to historic lows this month, with the US benchmark West Texas Intermediate crashing deep below zero for the first time as governments worldwide shut down businesses and air travel grinds to a halt due to the virus.

An agreement by top crude-producing nations to cut output by 10 million barrels a day from May 1 has done little to calm the market.

The production cuts "will probably take weeks to show up in the physical market, hence we are still stuck with the inventories issues that will continue to curb any semblance of bullish appetite", said AxiCorp global market strategist Stephen Innes.

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Tahir Sherani is an Islamabad-based reporter for Dawn News (TV) with 16 years of experience. His coverage focuses on the national economy, energy, cabinet affairs, the Establishment Division, and the Prime Minister’s Office.

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syed baqar ahsan

Apr 29, 2020 09:05pm

If this purposed reduction approved then automatically growth journey to prosperity starts then the only hurdle remains, the loot of IPPs/RPPs

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Nomi Goraya

Apr 29, 2020 09:09pm

Humans do not need oil at least for time being. Grain is the new gold.....

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salman

Apr 29, 2020 09:27pm

Wow that will be a great relief.

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Kabeer

Apr 29, 2020 09:29pm

Petrol cut should be 35, OGRA will say 20, Govt will reduce only 15. That's how they fool the nation. Its becoming a common trick.

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Nazir Gilani

Apr 29, 2020 09:30pm

The reduction is past due.

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imran khan-Mardan

Apr 29, 2020 10:10pm

even if the govt were to slash the price by half , whats the point when the overwhelming majority have been told to stay home. people are more concerned about govt's actions in these challenging times to help prevent the spread of this deadly virus and to provide adequate economic incentives to the poor and the marginalised rather than worrying about the price of oil. please provide the masses some financial relief rather than trying to take credit for a commodity for which there are no real buyers around the world.

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Sairbeen plus.

Apr 29, 2020 10:25pm

@Nomi Goraya , Absolutely. Why not began horse breeding, then horse carts atleast in rural areas, the tongas back in Lahore & Karachi. These days the air is pollution free, the Ozone layer is repairing itself, during the Coronavirus a cleanliness drive be initiated, clean the houses, roads, hospitals, beaches, volunteers should do this. The PPP workers must initiate, as charity begins at home, the youth from Lyari be given encouragement stipend and be asked to clean roads from Tower to Keamari and Tower to W.Wharf-E-Wharf. The localities at Sandspit, Hawks Bay do accordingly. The residents youth of DHA Clifton must do same free, as they are richies, the Korangi residents can do same but with appropriate stipend. Make Karachi great again. Just cleaning, sanitizing, will bring lot of change, and automatically Coronavirus virus will erode. With compassionate help of CM Sindh it’s possible.

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M. Saeed

Apr 29, 2020 10:28pm

In this lock-down age, oil should be reserved only for electricity generation. Already we have seen that the big hole in Ozone Layer above the arctic, has already been filled by the absence of fossil fuel burning gases.

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Fazal Karim

Apr 29, 2020 10:34pm

Will government ensure reduction in market prices of eatables, transport and other goods and services? Our businessmen increase prices with slightest increase in fuel prices but do not reduce prices when fuel prices gets lower. Instead of passing low international prices to public, half of it should have been retained to create jobs for labour laid off in the Middle East and back to Pakistan.

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shan

Apr 29, 2020 10:45pm

Bad decision. Prices should be managed by market and industry and not OGRA.

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Indian

Apr 29, 2020 10:53pm

Indian government refuses to pass any benefit of low prices to the public. What shameless bunch.

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Zubair Ahmad

Apr 29, 2020 11:02pm

Price of other necessities of life also needs a cut to make life Easy for a common person

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Niaz khan

Apr 29, 2020 11:14pm

Plz o govt check imedietly prices of eatable and other goods after oil prices

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Taimur

Apr 29, 2020 11:16pm

What about reducing electricity prices? Previously government used fuel prices as an excuse to increase electricity prices

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parveez shafi

Apr 29, 2020 11:45pm

Well thats very good The UK have their own oil, and there is no price drop .

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Ahmad

Apr 30, 2020 12:10am

Instead we will likely see new taxes in the next budget.

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Brownman

Apr 30, 2020 12:44am

Reduce electricity prices immediately, else all this would be considered a sham.

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Rizz

Apr 30, 2020 12:54am

OK, so electricity providers will be reducing the prices on the basis of fuel adjustments?

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Dr. Salaria, Aamir Ahmad

Apr 30, 2020 01:12am

Great move by Ogra. Well done and keep it up.

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Rayhan

Apr 30, 2020 01:33am

Do not expect this reduction. It would be much lower as history tells us from past and present government actions.

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Omer Malik

Apr 30, 2020 01:49am

Oil prices affect the price of every product of life so this is good.

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Reality check

Apr 30, 2020 04:00am

@parveez shafi, UK doesn't have their own oil and their has been a drop in prices albeit only 10-15p

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Tahir A

Apr 30, 2020 04:15am

That’s a bad decision. There was nothing wrong in keeping the money to fund the subsistence drive for the poor. Enticing vehicle owners to drive more with low patrol prices is wrong in this situation. If anything, they could’ve only reduced the rates of the furnace oil to lower the prices of electricity.

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GULSHAN OMAR

Apr 30, 2020 04:50am

I don’t know why China and India are storing million and million barrels of crude for future taking this cheap oil. I feel, instead of this India should have spend this money on people’s food and health.

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Tajammal

Apr 30, 2020 05:16am

Good act of the goverment must be appriceated

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GULSHAN OMAR

Apr 30, 2020 05:27am

Gas prices is lower in Pakistan than India. it’s really a big shame on India that they still gouging the poor customers whoever going out in this time lockdown though.

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Venkat

Apr 30, 2020 05:48am

If prices are slashed ..how loans will be repaid?

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shamshad

Apr 30, 2020 06:11am

Hope P.M and finance department agrees

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Mir Dost

Apr 30, 2020 07:12am

What about high-octane prices?

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JNB

Apr 30, 2020 07:56am

Govt will transfer only 50% relief to the public , thats for sure. No news is a Good News in this govt of PTI. Its a blood sucking govt.

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Riaz

Apr 30, 2020 10:32am

Will we get a relief in daily commodity prices? If farm to market charges are reduced substantially. Can we (so called) middle class live respectfully.

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Firdos khan

Apr 30, 2020 10:42pm

The govt should have fulfilled the recommendation of Ogra by decreasing the price of fuel

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Firdos khan

Apr 30, 2020 10:44pm

@JNB, you are absolutely correct

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Firdos khan

Apr 30, 2020 10:48pm

Govt is not following the recommendation of Ogra which is shame

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