ISLAMABAD: The recent worldwide fall in oil prices makes Pakistan Oil and Gas Regulatory Authority (Ogra) to recommend a significant reduction in fuel prices.
However, the government may try to keep an equilibrium between the requirement to maintain government tax revenues steady and passing on to consumers the effects of lower worldwide oil prices.
Ogra proposed in its recommendations sent to the Petroleum Ministry quick cuts in the prices of petrol, diesel, high, high-octane blended component and kerosene.
Rs6.14 per litre in petrol prices is recommended in the proposal that will make the price come down from Rs76.76 to Rs70.62 per litre. The high-speed diesel, which is being sold at Rs85.02 per litre at the moment will be down to Rs77.2 per litre.
The light diesel oil after this reduction will be sold at Rs60.11 per litre, while the price of HOBC currently being sold at Rs82.79 will be available against Rs75.79 per litre.
However, the recommendation is not confirmed to be implemented as opposed from finance ministry, which has committed to the International Monetary Fund (IMF) that it will raise tax revenues.
Meanwhile, the government during the month of August has raised the tax rate to swallow some impact of lower worldwide oil prices. Hence, the government is expected to adopt the same stance to raise revenue collection.
However, the ultimate decision in this regard will be taken by Prime Minister Nawaz Sharif, and the new prices will be implemented from next month of September.