Up to Rs 13.62 per litre hike expected for petroleum products
ISLAMABAD Web Desk Oil and Gas Regulatory Authority (OGRA) has recommended up to Rs 13.62 increase in per litre price of petroleum products in a summary sent to Ministry of Petroleum on Friday.from more information from homepage.The truth is that nobody has any real level of certainty what oil prices are going to do in the upcoming months least of all anyone who spends their time talking with reporters about it.
The price of HOBC mainly used in luxury cars may show a hike of Rs13.25 per litre taking the price to Rs93.56 from Rs80.31 per litre.
However petroleum ministry officials said the regulatory authority has proposed to not pass on the increase in oil prices. They added Ogra had recommended absorbing the rise in petroleum levy.
However the Ministry of Finance may oppose this proposal as unchanged oil prices would affect the country revenues. The final decision will be taken by Prime Minister Nawaz Sharif.
Officials said the government could still keep oil prices unchanged before the federal budget to avoid criticism from political parties and people who will face different taxes in the budget.
Oil prices rose in Asia on expectations that the latest US stockpiles report will show a further dip in crude reserves as traders worry about a global oversupply said analysts.
Speculation that US oil inventories could decline again in the weekly report appears to have attracted some relative support to prices said market analyst Nicholas Teo.Sources in the petroleum ministry said it had received a summary from the Oil and Gas Regulatory Authority (OGRA) on Thursday which suggested an increase in oil prices following fluctuations in global markets.
The price of petrol is expected to increase by Rs 6.19 per litre while diesel is expected to rise by Rs 7.91. According to OGRA recommendations the price of HOBC will increase by Rs 13.62.
The new prices will be effective from June 1.