ISLAMABAD - Partially accepting the Ogra’s recommendations on petroleum prices, the government yesterday reduced the prices of petrol and high speed diesel (HSD) by Rs4.86 and Rs4.26 per litre respectively for the month of January.

A notification issued by the Finance Division said the government had decided to reduce the prices of petroleum products for the month of January 2019. The price of petrol and high speed diesel had been reduced by Rs4.86 and Rs4.26 per litre, respectively. The price of kerosene oil had been reduced by Rs0.52 and that of LDO by Rs2.16 per litre, said the notification.

After the reduction, the price of high speed diesel will go down to Rs106.68 per litre from the existing Rs110.94 per litre; petrol to 90.97 per litre from current price of Rs95.83 per litre. Besides, light diesel oil (LDO) price will come down to Rs75.28 per litre from current price of Rs77.44 per litre and kerosene oil from Rs83.5 to Rs 82.98 per litre.

The Oil and Gas Regulatory Authority (Ogra) had recommended a decrease of Rs15.90 per litre in the price of high speed diesel (HSD) and Rs 9.5 per litre in motor gasoline (Petrol).

In the summary forwarded to Petroleum Division and Ministry of Finance, the Ogra had proposed that prices of high speed diesel might be reduced by Rs15.9 litre (14.33 percent), petrol by Rs9.5 per litre (9.91 percent), light diesel oil (LDO) by Rs 2.16 per litre and kerosene oil prices should be reduced by 0.52 per litre for the first month of the new year.

The government has transferred only 26 percent of the Ogra recommended relief on diesel prices to the consumers. On petrol around 51 percent of the Ogra recommended relief was transferred to the consumers. According to the Ogra source, the regulatory authority had made the recommendations on the basis of 17 percent GST.

Instead of providing full relief to the consumers, the government increased GST and petroleum levy on petrol and HSD. On petrol and HSD an increase of Rs4.64 per litre and Rs11.64 per litre respectively in the GST and Petroleum Levy were made.

High speed diesel is being used in agriculture and transportation, kerosene oil is used in remote areas where LPG is not available for cooking purposes. The LDO is used in industry.

The new prices shall be applicable from 1st to 31st January, 2019.