ISLAMABAD (Kashmir English): Due to a clear decline in crude oil prices in the global market, there is a possibility of a major decline in the prices of petroleum products in the country today.
Crude oil prices were recorded to decrease by up to five percent in the global market today; the Oil and Gas Regulatory Authority (OGRA) will determine new prices in proportion to the global market today.
It should be noted that during the past one week, the prices of petroleum products increased by a record 60 rupees, in which petrol was increased by 24 rupees and diesel by more than 60 rupees.
The government attributed the increase in prices to the rising prices of crude oil in the global market and the increase in import costs.
Oil marketing companies have expressed concern over the proposed system of daily changes in the prices of petroleum products, saying that this may affect business planning, stock management and supply chain; therefore, there is a need to consult all stakeholders on the pricing mechanism.
Earlier, the federal government had announced a new mechanism for revising prices of petroleum products, including petrol and diesel, daily in the country.
Addressing a press conference along with Information Minister Ataullah Tarar, Petroleum Minister Ali Pervaiz Malik said the Oil and Gas Regulatory Authority (Ogra) will determine the fuel prices daily based on the international market and will be updated on its website.
“The decision was taken by Prime Minister Shehbaz Sharif and the federal cabinet,” he added.
At the outset of the presser, Malik thanked the nation on behalf of the government, which he said has patiently tried to bear the burden of this war.
He noted that despite the efforts of the Chief of Defence Forces (CDF) and the Chief of Army Staff, Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, the US-Iran war seemed to be escalating in the region.
“The Cabinet and the prime minister have decided … Ogra will be given the responsibility to decide the fuel prices daily based on the international market,” the petroleum minister said.
He added that the cabinet has decided to bring transparency to the entire system of fuel prices, stating that “Ogra would not just publish the fuel rates on its website, but also publish the factors leading to the price that we see in each petrol pump.”
“The interests of all stakeholders will be taken into consideration with transparency, whether the price will fall or rise, or relief will be transferred to the people immediately,” Malik said.
He further said that the daily price review will be decided according to a seven-day weekly average in the international market.
