OGRA recommends an increase in prices of fuel prices

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OGRA recommends an increase in prices of fuel prices

ISLAMABAD, Nov 30 (APP): Ministry of Petroleum and Natural Resources and OGRA Wednesday recommended an increase in prices by 6.24%
in MS 92 RON Petrol, 7.47% in HSD and6.49% in Kerosene Oil with effect from 1st December 2016.
The increase recommended by Oil and Gas Regulatory Authority
(OGRA) is Rs 4.01/Litre in MS 92 RON Petrol, Rs 5.42/Litre in HSD and Rs 2.81/Litre in Kerosene Oil, a press release issued here said.
In order to maintain stability since April 2016, prices have been maintained despite fluctuation in international prices and the government has been absorbing the negative financial impact as impact of increase was not passed on to the end consumers.
ECC in its meeting dated 18.08.2016 decided to switch over from existing Petrol 87 RON to minimum 92 RON with effect from November 2016 to ensure improved quality product for end users.
Petrol 92 RON is of a much higher quality and the new OGRA proposed
price reflect the increase in international price as well as premium for a higher quality product.
In keeping with the Prime Minister’s instructions to provide maximum relief to the underprivileged, and keeping in view that Kerosene Oil and LDO is used by the less privileged, it has been decided to maintain the prices of Kerosene and LDO at current level for the month of December 2016.
Therefore against the price increase of Rs 4.01/Litre in 92 RON Petrol and Rs 5.42/Litre in HSD recommended by OGRA with effect from 1st December 2016, it has been decided to only increase the prices of 92 RON Petrol by Rs 2/Litre and HSD by Rs 2.70/Litre.
The ministry of finance will bear the financial impact of approximately Rs 4 billion due to loss of revenue on account of non passage of the OGRA recommended increase in prices to the end consumer.