The Oil and Gas Regulatory Authority (OGRA) on Saturday rubbished rumours about a whooping increase of Rs80 per litre in petrol price.
“It has been observed that speculative prices of gasoline and diesel are being reported in the print and electronic media since last evening, which is misleading and incorrect,” an OGRA spokesman said in a press statement.
He advised the elements to avoid disseminating speculative prices of petroleum products in the “public interest” by spreading misleading and incorrect information.
Earlier, OGRA also denied reports of a shortage of diesel and gasoline in the country, saying that sufficient stocks were available. However, in line with the government’s aim to convince the International Monetary Fund (IMF), the Ministry of Finance is expected to increase the price of petroleum in the upcoming fortnightly review.
The massive depreciation of the local currency against the US dollar in the last two days would not reflect greatly in the review due on January 31 (Tuesday) as the average exchange rate would clock in at Rs240, information gathered from the country’s oil sector showed.
However, the fortnightly review due on February 15 may reflect a significant increase in domestic petroleum prices on account of rupee depreciation.
Free on board (FOB) pricing will result in a significant increase in the price of fuel and gasoline in the subsequent weekly review the following week, according to The News.
According to sources with knowledge of the situation, using FOB would likely result in an increase of Rs25 in the price of fuel. “The exchange rate would create some hike, but not so much”, they said, attributing the hike to FOB as diesel price in the international market went up to $117 per barrel compared to $114 per barrel.
