The Oil and Gas Regulatory Authority (Ogra) has rejected media reports claiming fuel prices could be cut by up to Rs12 per litre from December 16, terming them “purely speculative” and unrelated to any formal pricing exercise by the regulator.
In a press statement on Saturday, Ogra said it had taken note of “speculative reports circulating in certain sections of the media regarding alleged initial working on petroleum prices” and emphasised that these do not reflect its position or any official process.
The authority reiterated that it calculates petroleum prices strictly in accordance with federal government instructions and only within the notified timeframe.
“Any price-related computation will be submitted to the Federal Government as and when formally required, following established procedures and legal requirements,” the statement said.
The clarification comes after multiple media reports suggested a reduction in domestic fuel prices from December 16. Citing official sources, one report said petroleum prices in Pakistan were expected to fall by up to Rs12 per litre, with initial calculations completed and a proposal awaiting formal approval.
Under the proposed adjustments, petrol was reported to become cheaper by 36 paisas per litre, high-speed diesel (HSD) by Rs11.85, kerosene oil by Rs11.70 and light diesel oil by Rs10.01 per litre.
The same report said that, if implemented, the new petrol price would be Rs263.09 per litre, HSD Rs267.80 per litre, kerosene Rs181.16 per litre and light diesel Rs153.76 per litre, with Ogra to send its summary to the government on December 15 before a final decision by the prime minister and notification by the Petroleum Division.
Another estimate said that, based on existing tax rates, the ex-depot price of HSD was expected to drop by about Rs11.80 per litre for the next fortnight ending December 31, while the petrol rate might be kept unchanged as the indicative reduction was calculated at less than a rupee per litre.
That analysis also suggested the government could build about Rs1.28 per litre in additional cost to accommodate higher margins for oil companies and dealers, as approved earlier in the week by the Economic Coordination Committee (ECC) of the cabinet.
According to the same projections, the ex-depot prices of kerosene and light diesel oil were estimated to decline by about Rs11.50 and Rs10 per litre, respectively, from current levels of Rs192.86 and Rs173.77 per litre. The ex-depot petrol price currently stands at Rs263.45 per litre, while HSD is at Rs279.65 and may fall to around Rs268 per litre under the revised calculations.
The latest speculation follows a modest price cut announced at the end of last month, when the federal government reduced petrol by Rs2 per litre to Rs263.45 and HSD by Rs4.79 per litre to Rs279.65 for the current fortnight on the basis of recommendations from Ogra and the relevant ministries.
