Don’t speculate on POL price reduction, says OGRA

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) issued a statement on Monday cautioning against speculating on the price of petroleum products following recent claims by federal ministers suggesting potential reductions in POL rates during the upcoming fortnightly review.

Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi had stated last week that POL prices could see a decrease as the rupee strengthened against the dollar.

In response to these statements, OGRA emphasized, “[the authority] would like to emphasize the importance of avoiding speculations regarding the prices of petroleum products.”

Caretaker government hints at lowering fuel prices

The regulatory authority pointed out that petroleum product prices in Pakistan are primarily influenced by international market prices and the exchange rate of the Dollar. Recent international petroleum price surges and improvements in the dollar-to-rupee exchange rate were acknowledged.

However, OGRA stressed that it is vital to note that there is still one week remaining before the announcement of new prices. “Therefore, any speculation about price increases or decreases during this period is highly speculative and could potentially disrupt the smooth functioning of the oil supply chain.”

Over the last 14 days, the rupee has gained approximately Rs16 against the dollar, prompting discussions about potential price adjustments. Pakistan, being an importer of POL, conducts transactions in dollars.

During the previous fortnightly review, the caretaker government had raised petrol prices by more than Rs26 and diesel prices by over Rs17 per litre, resulting in prices of Rs331.38 and Rs329.18, respectively — marking the highest rates in history.