The Oil and Gas Regulatory Authority (OGRA) has hinted at rising petroleum products prices from March 1 linking it to the depreciation of Pakistani currency and unprecedented hike in international crude oil prices.

While briefing the NA Standing Committee on Energy (Petroleum Division) Chairman Ogra Masroor Khan said that the situation is in front of you as there is no precedent for rising oil prices in the international market which had occurred during the past 12 weeks. The meeting was chaired by Imran Khattak.

OGRA chairman said the rupee has also depreciated sharply against the dollar. He said that the government is receiving Rs. 14 petroleum levy per liter while GST is zero. The money coming into the treasury is being compromised, he added. The Chairman of the committee asked how the situation in Russia and Ukraine will impact the prices of PoL products in the country? Chairman Ogra responded that from the current situation, you can guess the answer. As prices go up, the burden will fall on the people, chairman Ogra added.

Khurrum Dastagir asked if there was any fear of rising diesel prices? Chairman OGRA Masroor Khan replied that the Oil Companies Advisory Committee (OCAC) and other stakeholders have expressed their concern in this regard. Masroor Khan further informed that the formula of oil prices determination has not changed and they are still following the old formula.

Briefing the committee on Pak Stream Gas Pipeline, Secretary Petroleum Ali Raza Bhutta informed that talks with Russia on the gas pipeline project were completed. He said that Russia will also invest and lay the pipeline. He said that groundwork on the project will be started soon. Secretary petroleum further informed that PLL has purchased another expensive LNG cargo for March. The cargo was purchased at a rate of $25.12 per MMBtu.

Source: Pro Pakistani