OGRA recommends reducing petrol prices by up to Rs. 44 [May 2020]
According to the Advisor to the Prime Minister on Finance Dr Hafeez Shiekh, petrol rates in Pakistan will decrease further from 1 May.
The Oil and Gas Regulatory Authority (OGRA) has acclaimed that petrol prices by up to Rs. 44 per litre for May 2020 because of crude oil prices has reduced in the international market.
The proposal of deduction in price by OGRA suggests that petrol price may be decreased by Rs. 20.68 per litre, diesel by Rs 33.94 per litre, kerosene oil by Rs. 44.07 per litre and light-speed diesel (LDO) by Rs. 24.57 per litre.
If the summery is accepted, petrol prices will drop down to Rs. 75.9 per litre, diesel price will be Rs. 73.31 per litre, light-speed diesel will be Rs. 62.51 per litre and kerosene oil will be Rs. 33.25 per litre.
OGRA has moved the recommendations to the Ministry of Energy (Petroleum Divison) who will be advancing it to the Finance Ministry for endorsement and a decision will be reserved today.
Instead of this, the Regulatory Authority has suggested increasing the petrol charge to Rs. 24.20 per litre on diesel, Rs. 18.9 per litre on petrol, Rs. 6 on kerosene and Rs. 3 on light speed diesel. The government also charges 17% general sales tax (GST) on all petroleum goods.
It is one of the great drawbacks of worldwide COVID-19 pandemic. This constant drop in petrol prices and other petroleum goods is because US oil prices have been decreasing ever since the coronavirus plague. So the demand for oil has reduced and companies don’t have sufficient storage for more oil.
Go backwards on March 25 th ,2020 when the price of petrol was also reduced by Rs.15 and the government ensured that time to maintain these prices for three months.
Advisor to the Prime Minister on Finance Dr Hafeez Shiekh, while speaking to a media that once the cost will be reduced, the cost of goods in the market, especially in the field of the energy sector and travelling would be reduced.
June will be coming with the “CORONA BUDGET” which will help to revise the business, profits and loss, and effects of the COVID-19 and lockdown.