ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) has recommended a decrease of Rs 15.90 per litre in the price of high speed diesel (HSD) and Rs 9.5 per litre in motor gasoline (petrol) for the month of January 2019.

In a summary forwarded to Petroleum Division and Ministry of Finance, the Ogra has recommended downward revision in the prices of almost all the petroleum products, sources told The Nation. OGRA has recommended decrease in oil prices due to falling oil prices in international market. OGRA has proposed that prices of high speed diesel may be reduced by Rs15.9 litre (14.33pc), petrol by Rs9.5 per litre (9.91 percent), light diesel oil (LDO) by Rs 2 per liter and kerosene oil prices should be reduced by 0.50 per litre for the first month of the new year.

If the government accepts the Ogra’s recommendation, then high speed diesel prices would go down to Rs 95.04 per litre from existing Rs110.94 per litre; petrol to 86.33 per litre from current price of Rs95.83 per litre. Besides, light diesel oil (LDO) price would come down to Rs 75.44 per litre from current price of Rs77.44 per liter and kerosene oil from Rs83.5 to Rs 83 per litre.

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

The government will take the final decision on the Ogra’s recommendation on Monday. A source however said that the government is unlikely to pass on the entire benefit of the lower international prices to the consumers and will partially approve the OGRA’s summary. Currently the government is not even charging the standard GST rate on petroleum products. Presently against the standard GST rate of 17 percent the federal government is collecting 8 percent GST on motor spirit excluding HOBC, 13 percent on high speed diesel, 2 percent on kerosene while on light diesel oil (LDO) there is 0.5 percent GST.

It is pertinent to mention here that for the month of December OGRA had proposed an increase of Rs6.21 per litre in petrol, Rs2.00 per litre in high speed diesel (HSD), Rs9.91 per litre in kerosene oil and Rs7.79 per litre in light diesel oil (LDO).However the government had reduced the prices of petrol and HSD by Rs2 per litre each, while the prices of kerosene and LDO was reduced by Rs 3 and Rs 5 per litre respectively.