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The Oil and Gas Regulatory Authority (Ogra) has notified that the maximum ex-depot sale prices, effective from November 16, of the following products, will remain unchanged. The price determination has been carried out by Ogra in accordance with the formula prescribed by the Federal Government.
It requires that the price be based on average Arab Gulf prices for the last fortnight for Naphtha, Diesel, Kerosene and HSFO, to which Inland Freight Equalisation Margin (IFEM) is added, which reflects estimated transportation cost of the products to the 29 depots in the country, for the purpose of price equalisation. Government levies viz Excise duty, Petroleum development levy and sales tax are added, to arrive at the notified prices.
The spokesman said the government is providing a subsidy of Rs 1.05 per litre on Kerosene oil to the common man. Similarly, subsidy of Rs 0.85 on light diesel oil is being given.

Copyright Business Recorder, 2006

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