POL price adjustment: Ogra's advice disregarded
ISLAMABAD: Consumers see a smaller reduction in high-speed diesel (HSD) prices than initially proposed by the Oil and Gas Regulatory Authority (Ogra). Effective May 16, 2025, the federal government has reduced HSD price by Rs2 per litre, significantly less than Ogra's recommended Rs4.09 per litre decrease.
Meanwhile, petrol prices will remain unchanged, as a result of government adjustments to the inland freight equalization margin (IFEM) and exchange rate adjustments, despite OGRA suggesting a Rs1.25 per litre decrease.
The federal government adjusted Rs2.09 per litre out of total recommendedRs4.09 per litre decrease in HSD in exchange rate and IFEM on HSD.
Avg of platts with incidentals and duty on HSD reduced by Rs4.09 per litre from Rs159.47 per litre on May 1 to Rs155.38 per litre on May 16, 2025.
The government allowed exchange rate impact of 84 paisa in the review.
The IFEM increased by Rs1.55 per litre from Rs3.33 per litre to Rs4.88 per litre.
District margin and dealer margin on HSD was kept unchanged at Rs7.87 per litre and Rs8.64 per litre, whereas, extra margin reduced from 31 paisa to 1 paisa.
Avg of platts with incidentals and duty on petrol reduced by Rs1.25 per litre from Rs151.71 per litre on May 1 to Rs150.46 per litre on May 16, 2025.
The government allowed exchange rate impact of 1.25 per litre from 0.09 paisa to Rs1.34 per litre in the review.
The IFEM remained unchanged at Rs6.30 per litre.
Copyright Business Recorder, 2025
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