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Karachi: Oil and Gas Regulatory Authority (Ogra) has recommended 6% increase in POL prices from February 1, 2012 on account of increasing International Oil Prices.
According to Alfalah Securities Limited, the oil prices have surged due to sanctions on Iran and tensions between US and Iran. The International average crude oil prices (Opec basket) have gone up by 4.2% MoM in January and the currency has depreciated by ~ 1.4% against dollar in January leading to increase in POL prices. Ogra is recommending an increase in petrol price by PKR 5.34 to PKR 94.88, HSD PKR 3.09 to PKR 101.91 and kerosene oil PKR 2.77 to PKR 92.02 per litre. Alfalah Securities Limited believes the government might reduce the petroleum levy to absorb a portion of price hike to lower its inflationary impact as it would heat up inflation across the board. However, it would not impact the oil marketing companies as they earn fixed rupee margins.