ISLAMABAD: The government has decided against implementing a significant increase in fuel prices as recommended by the Oil and Gas Regulatory Authority (OGRA). Instead, the government has opted for a more moderate adjustment based on the latest Inland Freight Equalization Margin (IFEM) rates and exchange rate fluctuations.

The OGRA had proposed an increase of Rs1.82 per litre in petrol prices and Rs3.56 per litre in High-Speed Diesel (HSD) prices for the period of November 1-30. These recommendations were based on the increased cost of Pakistan State Oil (PSO) operations.

However, the government has chosen to mitigate the impact of these cost increases by reducing adjustments in the exchange rate and IFEM components. As a result, the prices of both petrol and HSD will remain unchanged until November 30.

The cost of Pakistan State Oil (PSO) (average of plats with incidentals and duty) had witnessed a raise by Rs1.82 per litre from Rs163.03 to Rs164.86 per litre on petrol and Rs3.56 per litre on HSD from Rs173.13 to Rs176.69 per litre.

However, the government reduced the exchange rate adjustment on petrol from 95 paisa to zero and by 92 paisa on HSD from Rs1.16 per litre to 24 paisa. IFEM has also reduced by 88 paisa on petrol from Rs7.89 to Rs7.01 per litre and Rs2.57 on HSD from Rs4.17 to 24 paisa. Seven paisa on HSD was again adjusted in extra margin from 17 paisa to 10 paisa.

Copyright Business Recorder, 2024