Due to a decline in oil prices in the international market, the prices of petroleum products are also likely to be slashed in Pakistan with the price of petrol expected to go down by Rs15 to Rs13 per litre.
According to sources, there is a strong possibility that the government will significantly reduce the prices of petroleum products locally for the next fifteen days. They said petrol prices may drop by between Rs13 and Rs15 per litre, while diesel prices could see a reduction of up to Rs11 per litre.
OGRA will prepare a summary regarding adjustments in petroleum product prices and send it to the prime minister. In case of an approval, the Ministry of Finance will issue a notification.
According to the Oil Marketing Association of Pakistan (OMAP), petrol prices could fall by Rs12 per litre, while high-speed diesel (HSD) prices may see a cut of Rs8 per litre. The decline is attributed to international market trends and inventory adjustments.
In a letter addressed to the chairman of the Oil and Gas Regulatory Authority (OGRA), OMAP chairman Tariq Wazir Ali strongly opposed the new ‘take and pay’ clause, stating that it unfairly shields refineries from market fluctuations while placing the entire financial risk on OMCs.
Under the proposed mechanism, OMCs would be obligated to lift their allocated quota of petroleum products from local refineries or face financial penalties. OGRA had introduced the clause following complaints from refineries that excessive fuel imports were affecting domestic production, leading to underutilisation of refining capacity.
