Tag: Ogra

  • Govt expected to hike gas prices by 50%, electricity by Rs4 per unit for IMF deal

    Govt expected to hike gas prices by 50%, electricity by Rs4 per unit for IMF deal

    Pakistan is expected to increase gas sale prices by 45-50 per cent and electricity base tariffs by Rs3.50 to over Rs4 per unit for the fiscal year 2023-24.

    These adjustments must be notified before the upcoming meeting of the International Monetary Fund’s (IMF) Executive Board on July 12.

    According to reports, this increase in energy prices is necessary to pave the way for the $3 billion programme agreed upon under the Stand-By Arrangement (SBA) with the IMF at the staff level.

    Earlier, the Oil and Gas Regulatory Authority (Ogra) announced an increase of 50 per cent (Rs415.11 per MMBTU) for consumers of the Sui Northern Gas Pipeline Limited (SNGPL), bringing the subscribed gas price to Rs1,238.68 per MMBTU.

    Additionally, the regulator raised the gas price by 45 per cent (Rs417.23 per MMBTU) for consumers of the Sui Southern Gas Company Limited (SSGCL) for the fiscal year 2023-24. However, the government has yet to officially notify the increase in gas prices for the upcoming financial year.

    The SNGPL has an accumulated shortfall of Rs560.378 billion up to FY23, while Sui Southern has a shortfall of Rs97.388 billion. The federal government had previously notified the increase in gas sale prices based on different categories from January 1, 2023.

    As per the existing policy, high-end consumers subsidise the gas prices for low-end consumers. It is likely that the government will continue this policy, with high-end consumers paying the gas price for low-end consumers starting from July 1, 2023.

    According to The News, the entire energy sector is currently burdened by circular debt, which amounts to over Rs4,300 billion. This debt is divided between the oil and gas sector, with Rs1,700 billion, and the power sector, with Rs2,600 billion.

    The IMF emphasises the need for Pakistan to make the energy sector viable and sustainable, which requires increasing the base tariff for the fiscal year 2023-24.

  • OGRA proposes Rs10 million fine for oil companies involved in illegal petroleum stocking and distribution

    OGRA proposes Rs10 million fine for oil companies involved in illegal petroleum stocking and distribution

    The Oil and Gas Regulatory Authority (OGRA) has recommended severe penalties for those involved in the illegal storage, handling, and distribution of petroleum products in Pakistan. OGRA has proposed amendments to Sections 285-B and 285-C of the Pakistan Penal Code to address this issue.

    According to OGRA’s proposal to the Cabinet Division, individuals or oil marketing companies found guilty of unauthorised storage and handling of petroleum for the purpose of sale, resale, transport, or distribution to consumers could face up to ten years in prison or a fine of up to Rs10 million. The regulatory body emphasises that such unauthorised activities have detrimental effects on society, particularly innocent individuals who may unknowingly be exposed to unsafe petroleum products.

    The proposed amendments aim to address the existing gaps in the legal framework related to the handling of explosive substances, fire or combustible materials, and machinery that can cause harm to human life and property damage. While Sections 285, 286, and 287 of the Pakistan Penal Code already deal with these issues, they do not specifically cover the illicit sale, distribution, production, storage, or handling of petroleum products.

    To rectify this, OGRA has recommended the insertion of Section-A 285-B and 285-C in the Pakistan Penal Code. These new sections would serve to safeguard human life and property by imposing strict penalties for unlicensed handling of petroleum products and explosive substances, as well as unauthorised manufacturing of machinery and equipment.

    The proposed amendments align with the constitutional provisions of Pakistan, which ensure that no person shall be deprived of life, liberty, or property except in accordance with the law. By introducing these new measures, OGRA aims to deter illegal activities in the oil and gas sector, protect public safety, and maintain a regulated and lawful environment for the industry.

    The recommendations made by OGRA are now under consideration by the Cabinet Division. If approved and implemented, the proposed amendments would serve as a strong deterrent against the illegal handling and distribution of petroleum products, ensuring the safety and well-being of the Pakistani public.

  • Petrol price expected to decrease by Rs10 per litre for the next fortnight

    Petrol price expected to decrease by Rs10 per litre for the next fortnight

    The prices of petroleum products are expected to decrease starting from May 16, as the coalition government intends to provide some relief to the distressed public amidst the severe economic crisis and record inflation.

    According to reports in local media, petrol price will see a reduction of Rs10 per litre for the rest of May.

    It has been reported that the Oil and Gas Regulatory Authority (OGRA) has recommended a decrease in the prices of petroleum products. Based on these reports, the price of petrol may be reduced by Rs10 per litre, while the price of diesel is anticipated to decrease by Rs8 per litre.

    OGRA has submitted a summary to the government, and Finance Minister Ishaq Dar and other officials will seek the input of Prime Minister Shehbaz Sharif on the recommendations. The final decision will be announced today.

    The revised prices of petroleum products for the upcoming two weeks will be implemented after midnight on May 15.

    Earlier this month, the federal government announced a reduction of Rs5 per litre in the price of diesel, while the price of petrol remained unchanged. Presently, petrol is being sold at Rs282, HSD at Rs288, kerosene oil at Rs176.07, and light diesel oil at Rs164.68 per litre.

  • Pakistan sees increase in LPG prices following petrol price hike

    Pakistan sees increase in LPG prices following petrol price hike

    The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the price of Liquefied Petroleum Gas (LPG) in Pakistan, following the recent hike in petrol prices. As per the notification, the price of LPG has been increased by Rs10 per kilogramme, with the new price per kilogramme set at Rs229.

    Moreover, the price of domestic and commercial cylinders of LPG has also been raised. The price of a domestic cylinder has been increased by Rs120, whereas a commercial cylinder will now cost Rs450 more than the previous rate.

    In addition, the federal government recently increased the petrol price by Rs10 per litre for the next two weeks. During a televised speech, the finance minister explained that the hike was due to the rise in international petroleum prices and exchange rate fluctuations.

    As a result, the new petrol price has been fixed at Rs282 per litre, while the rates for high-speed diesel (HSD) and light diesel oil have remained unchanged at Rs293 per litre and Rs174.68 per litre, respectively.

    Furthermore, the government has also raised the price of kerosene oil by Rs5.78 per litre, pushing it up from Rs180.28 per litre to Rs186.07 per litre.

  • OGRA jacks up LPG price by Rs60 per kg

    OGRA jacks up LPG price by Rs60 per kg

    The Oil and Gas Regulatory Authority (OGRA) raised the cost of liquefied petroleum gas (LPG) by Rs60 per kilogramme after a hike of Rs35 in petrol prices.

    The price of liquefied petroleum gas (LPG) has increased by Rs60 per kg to Rs264 per kg, according to a statement from the OGRA.

    The price of a domestic LPG cylinder has gone up by Rs703 and a commercial cylinder by Rs2,706 following the latest price revision. Domestic cylinders will now be sold at Rs3,115 and commercial cylinders at Rs11,984.

    In a statement, LPG Industries Association of Pakistan Chairman Irfan Khokhar lambasted the regulatory authority and called it “mafia.” “Liquefied petroleum gas was now out of reach of consumers after the historic increase in prices,” he said.

    It is pertinent to mention here that the federal government on January 29 announced raising the prices of gasoline and diesel by Rs35 per litre.

    In a televised address, Ishaq Dar said that an 11 per cent increase was witnessed in the prices of petroleum products in the international market. Dar further announced that the prices of kerosene oil and light diesel oil have been increased by Rs18 per litre.

    After the latest round of hikes, petrol is currently priced at Rs249.80, diesel at Rs262.80, kerosene oil at Rs189.83, and light diesel at Rs187.

  • Govt increases petrol, diesel prices by Rs35 per litre

    Govt increases petrol, diesel prices by Rs35 per litre

    Finance Minister Ishaq Dar on Sunday announced that the federal government has decided to hike the prices of petrol and diesel by Rs35 per litre, which will be applicable from 11 am today.

    Dar said that 11 per cent increase was witnessed in the prices of petrol products in the international market.

    The prices of kerosene oil and light diesel oil have been increased by Rs18 per litre.

    After the latest round of hikes, petrol is now priced at Rs249.80, diesel at Rs262.80, kerosene oil at Rs189.83 and light diesel at Rs187.

    The minister was of the view that prices of petroleum products were not increased in the past 4 months, adding that prices of diesel and kerosene oil also decreased during the period.

    The minister went on to say that the speculations had also led to an artificial shortage of petroleum products in the market. “On social media, it was reported that [fuel prices] were to be jacked up by Rs47-80 which unfortunately became an incentive for them [hoarders],” he added, “because of this, we have received reports of artificial shortages in the market.”

  • Pakistan has ample fuel stocks available: PSO denies reports of petrol, diesel shortage

    Pakistan State Oil (PSO) on Friday denied all the rumours about the shortage of fuel reserves and said that there is ample stock of petroleum products in the country.

    The Ministry of Energy and Oil & Gas Regulatory Authority (OGRA), according to the PSO spokesman, is keeping an eye on the general situation regarding product availability by other oil marketing companies to ensure that the nation’s supply chain is maintained smoothly.

    He claimed that PSO would continue to supply the nation with petroleum products on an uninterrupted basis, that there is enough gasoline and diesel in the country, and that 80,000MT and 90,000MT, respectively, of each have arrived at Karachi Port.

    According to the OGRA spokesperson, local oil marketing firms and refineries are also working to meet the demand for petroleum products.

    The Oil Companies Advisory Council (OCAC) requested last week that the federal government step in right away to guarantee the prompt issuing of lines of credit to import petroleum products in order to prevent a fuel scarcity in the nation.

    On behalf of oil marketing companies (OMCs) and refineries, the OCAC sent a letter outlining the difficulties resulting from the opening of letters of credit (LCs) for the import of petroleum products being delayed.

    There haven’t been many oil shipment cancellations as a result of the LCs being closed.

    Mogas, High-Speed Diesel (HSD), and 650,000 MT of crude oil must all be imported into Pakistan on a monthly basis for a total cost of about $1.3 billion.

  • OGRA approves 74% hike in sui gas prices amid economic crisis

    OGRA approves 74% hike in sui gas prices amid economic crisis

    The Oil and Gas Regulatory Authority (Ogra) has approved an increase in the price of natural gas of up to 74 per cent at a time when the country’s people are struggling to make ends meet owing to rising inflation.

    According to specifics, the Sui Southern Gas Company (SSGC) and the Sui Northern Gas Pipelines Ltd. (SNGPL) would each be permitted to raise gas rates by up to 74.42 per cent and 67.75 per cent, respectively.

    Ogra’s decision will be implemented after the approval of the federal government. If the federal government does not approve it within 40 days, the decision will be implemented automatically.

    The oil and gas regulator has okayed increases of Rs406.28 and Rs469.28 per million British thermal units (mmBtu) for SNGPL and SSGC, respectively.

    OGRA further said that the average gas price for SNGPL would reach Rs952.17 per unit from the current price of Rs545.89 per mmBtu, while that of SSGCL would reach Rs1,161 per unit from the current Rs692.63 per mmBtu.

    LPG price hike

    Earlier, the prices of liquefied petroleum gas (LPG) were increased by Rs5 per kg without a notification from OGRA.

    The LPG price has now jumped to Rs260 per kg from Rs255 after an increase of Rs5. Meanwhile, the prices of domestic and commercial cylinders increased by Rs60 and Rs230, respectively.

    The gas is available for Rs270 per kilogramme in Murree, while its price exceeds Rs300 per kilogramme in Gilgit-Baltistan and Skardu.

  • Petrol price to remain unchanged at Rs214.80 per litre for next fortnight

    Petrol price to remain unchanged at Rs214.80 per litre for next fortnight

    Finance Minister Ishaq Dar announced on Saturday that the government will maintain the price of petroleum products for the next two weeks.

    In a video statement, he said that the Oil and Gas Regulatory Authority (OGRA) requested an increase in domestic rates of petroleum products because of the upward trend in oil prices. However, he said that the price revision was rejected by the government.

    The price of petrol will remain unchanged at Rs214.8 per litre while diesel will be sold at Rs227.80 per litre till mid-January 2023.

    Kerosene oil will be sold at Rs171.83 per litre while light diesel oil will be sold at Rs169 per litre.

    “Kerosene is used by the low-income segment for heating needs,” the finance minister said.

    Previously, the market anticipated that the cost of petroleum products would remain unchanged.

  • OGRA hikes LPG price by Rs11.79 per kg for December

    OGRA hikes LPG price by Rs11.79 per kg for December

    The Oil and Gas Regulatory Authority (OGRA) has increased the prices of Liquefied petroleum gas (LPG) by Rs11.79 per kilogramme for this month.

    The price of a domestic cylinder (11.8 Kg) has gone up by Rs139 while the price of a commercial cylinder increased by Rs535, according to a notification from OGRA.

    As per the new pricing, the domestic cylinder will now be available at Rs2,548 and the commercial cylinder will be available at Rs9,804.

    LPG Prices OGRA

    The federal government earlier announced to keep the prices of petrol and diesel unchanged for the next 15 days, despite a global reduction in oil prices.

    Finance Minister Ishaq Dar announced to keep the prices of petrol and high-speed diesel unchanged for the next 15 days.

    However, Dar announced a reduction of Rs10 per litre in the price of kerosene oil and Rs7 per litre in light diesel.