Ogra issues clarification on upcoming petroleum prices review

• Regulator calls price cut reports speculative, not official working.
• Diesel, kerosene, LDO cuts remain unconfirmed ahead of Dec 16.
• Speculation grows, but formal fuel revision yet to be approved.

The Oil and Gas Regulatory Authority (Ogra) has dismissed media reports suggesting fuel prices could fall by up to Rs12 per litre from December 16 as “purely speculative”, saying they do not reflect its position or any formal pricing process.

In a press statement, the regulator said it had taken notice of “speculative reports circulating in certain sections of the media regarding alleged initial working on petroleum prices” and stressed that these did not represent the Authority’s stance or any formal exercise.

Ogra reiterated that it undertakes petroleum price computations strictly in line with the federal government’s instructions and within the prescribed timeframe. 

“Any price-related computation will be submitted to the Federal Government as and when formally required, following established procedures and legal requirements,” the statement said.

The clarification comes after multiple media reports suggested a reduction in domestic fuel prices from December 16. Citing official sources, one report said petroleum prices in Pakistan were expected to fall by up to Rs12 per litre, with initial calculations completed and a proposal awaiting formal approval.

Under the proposed adjustments, petrol was reported to become cheaper by 36 paisas per litre, high-speed diesel (HSD) by Rs11.85, kerosene oil by Rs11.70 and light diesel oil by Rs10.01 per litre. 

The same report said that, if implemented, the new petrol price would be Rs263.09 per litre, HSD Rs267.80 per litre, kerosene Rs181.16 per litre and light diesel Rs153.76 per litre, with Ogra to send its summary to the government on December 15 before a final decision by the prime minister and notification by the Petroleum Division.

Another estimate said that, based on existing tax rates, the ex-depot price of HSD was expected to drop by about Rs11.80 per litre for the next fortnight ending December 31, while the petrol rate might be kept unchanged as the indicative reduction was calculated at less than a rupee per litre. 

That analysis also suggested the government could build about Rs1.28 per litre in additional cost to accommodate higher margins for oil companies and dealers, as approved earlier in the week by the Economic Coordination Committee (ECC) of the cabinet.

According to the same projections, the ex-depot prices of kerosene and light diesel oil were estimated to decline by about Rs11.50 and Rs10 per litre, respectively, from current levels of Rs192.86 and Rs173.77 per litre. The ex-depot petrol price currently stands at Rs263.45 per litre, while HSD is at Rs279.65 and may fall to around Rs268 per litre under the revised calculations.

The latest speculation follows a modest price cut announced at the end of last month, when the federal government reduced petrol by Rs2 per litre to Rs263.45 and HSD by Rs4.79 per litre to Rs279.65 for the current fortnight on the basis of recommendations from Ogra and the relevant ministries.