Prime Minister Nawaz Sharif has refused to accept the Oil and Gas Regulatory Authority (OGRA) summary concerning the petroleum prices for July,2014,without approval, and has asked for reconsiderations.
According to the spokesman, PM house, the government has decided to release half a billion subsidy for ensuring that petroleum prices will not fluctuate, and that it would be beneficial for the general public.
On the contrary, the subsidy given to last year’s petroleum prices was Rs. 1.78 billion.
Ogra had submitted the recommendations to Finance Minister Ishaq Dar and Petroleum Minister Shahid Khan Abbasi , according to which , Ogra had incremented price of petrol to 84 paisas per litre, price of High Octane Blending Component (HOBC) to Rs. 3.63 per litre, price of Kerosene to 30 paisa per litre, price of high speed diesel to 27 paisa per litre, and that of light diesel to 22 paisa per litre.
Because of the disapproval of the Ogra’s summary , the petroleum prices remained constant. Similarly, according to the credible sources, government wants to maintain constancy in petroleum prices, by compensating the required increment in production prices with an equal reduction in the rate of petroleum levy.