Ogra proposes a cut in POL prices from July 01 – Alfalah Securities Limited

Karachi, June 29, 2012 (PPI-OT): Oil and Gas Regulatory Authority (Ogra) has proposed a decline of up to PkR 6.44 per litre in local petroleum product prices effective from July 1, 2012, as reported in the local newspaper.

According to Alfalah Securities Limited, the reduction is proposed mainly on the back of steep drop in international crude oil prices however, the steep devaluation of Pak Rupee has lowered the benefit which otherwise would have resulted in even higher reduction.

OGRA has forwarded a summary recommending a reduction of PkR 5.02 per litre in petrol price and PkR 6.44 in HOBC. Likewise, Kerosene is proposed to be dropped by PkR 2.54 per litre, High Speed Diesel by PkR 2.48 per litre, Light Diesel Oil by PkR 2.86 per litre, JP-1 by PkR 2.48 per litre, JP-4 by PkR 3.46 and JP-8 by PkR 2.48 per litre. At present, petrol is being sold at PkR 89.51, HOBC at PkR 113.32, diesel at pkR 99.66, kerosene at PkR 88.79 and LDO at PkR 86.57 per litre. The drop in POL prices if approved would bode well for the economy as it would lead to ease off inflation in the country.