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Business Recorder
23-07-2025
- Business
- Business Recorder
Ogra holds seminar to initiate comprehensive digital platform
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has conducted a seminar at its headquarters to formally initiate a comprehensive digital platform to fully digitise Pakistan's oil supply chain and is at highly advanced stage of the development. The digitisation will cover the import terminals to the fuel dispensing stations, in a move aimed at eliminating inefficiencies, curbing pilferage, and restoring public trust in the energy sector. In a decisive statement, Ogra Chairman, Masroor Khan, affirmed: 'Pakistan's oil sector must embrace digitisation — fully and without delay. From the point of import to the petrol pump, every link in the supply chain must be digitally monitored. Digitisation is essential not just for operational efficiency, but also for national transparency and integrity.' The Ogra is committed to leading this transition and will not tolerate any obstruction, whether deliberate or due to neglect. 'Let me be clear: any obstruction to digitisation — whether by design, neglect, or vested interest — will be addressed firmly. We cannot allow outdated systems to hold back national progress,' the chairman added. Under this initiative, every component of the oil supply chain — including refineries, storage terminals, tank lorries, Oil Marketing Company (OMC) depots, and retail fuel stations — will be brought under a unified digital oversight framework. This real-time monitoring system will allow for improved tracking, better data integrity, and enhanced regulatory control. OGRA clarified that this initiative is not a proposal, but a regulatory mandate. 'Digitisation is now a legal requirement. Clear timelines and enforceable penalties will ensure compliance. All stakeholders must align with this transformation or face regulatory consequences.' This bold move positions Pakistan among progressive nations that are integrating technology with energy regulation to enhance national efficiency, reduce economic losses, and build public confidence, the Ogra spokesman said. Copyright Business Recorder, 2025
Express Tribune
16-07-2025
- Business
- Express Tribune
Fuel prices hit new peaks, sending consumers reeling
Listen to article The government on Tuesday hiked the prices of petroleum products by up to Rs11 per litre for the second half of July 2025 in a regressive step that would exacerbate the economic hardships faced by the common man. This is the second consecutive increase in the prices of petrol and diesel since the start of the new fiscal year on July 1. On June 30, the government had increased the fuel prices by up to Rs10 for the first fortnight of the current month that ended on Tuesday. Separately, the Oil and Gas Regulatory Authority (Ogra) announced a reduction in the prices of re-gasified liquefied natural gas (RLNG) for the current month, while the rate of kerosene oil and the light diesel oil also came down slightly. According to a notification issued by the Finance Division, petrol price went up by Rs5.36 — from Rs266.79 to Rs272.15 per litre, while the high-speed diesel (HSD) rose by Rs11.37 per litre — from Rs272.98 to Rs284.35 for the July 16-31 period. This latest adjustment in the petrol and HSD prices reflects persistent volatility in the global oil markets. It also shows the government's fiscal constraints in meeting its ambitious revenue targets as it is already charging highest rate of petroleum levy (PL) on the petroleum products to collect revenue. The government said that it had taken the latest decision on the recommendations of Ogra and the relevant ministries. "The Government has decided to revise the prices of petroleum products for the fortnight starting July 16, based on the recommendations of OGRA & the relevant ministries," it said. Ogra had recommended the increase in the prices of petroleum products based on Rs78.02 per litre PL on petrol and Rs77.01 on HSD. It had also assumed Inland Freight Equalisation Margin (IFEM) at Rs8.89 per litre on petrol and Rs6.04 on HSD. The exchange rate adjustment was calculated at Rs3 per litre on petrol and Rs2 on HSD. Diesel is widely used in agriculture and freight transport, and any price increase directly impacts the cost of goods and services. Petrol, meanwhile, fuels motorcycles and cars, and serves as an alternative to compressed natural gas (CNG), especially in Punjab, where CNG stations rely on imported LNG. The fresh price hike is expected to further widen the gap between stagnant household incomes and the rising cost of living. Analysts have warned that without the fiscal space or targeted subsidies, the brunt of global oil volatility will continue to be passed on to the end users. The government had the space to rescue the consumers from the current hike in oil prices by slashing the rate of PL, but it did not compromise on revenue collection and, hence, passed on the full impact of the increase in oil prices in the global market to the consumers. On July 1, the federal government has increased petrol and HSD prices significantly, attributing the hike to global market volatility amid the Iran-Israel war. Petrol was increased by Rs8.36 to Rs266.79 per litre, and HSD by Rs10.39 to Rs272.98, based on Ogra's recommendation. Pakistan imports petroleum products to meet around 85% of its local consumption, whereas 15% needs are met through locally-produced crude oil. At present, consumers are already paying over Rs77 per litre in PL. The current year's budget also includes a new carbon levy, further pushing the fuel prices. Meanwhile, in the deregulated market, kerosene oil becomes cheaper by Rs3.10 and the price of the LDO came down by Rs1.85, while Ogra, through a notification, announced a reduction in the RLNG prices for the current month on the back of slight decrease in the delivered ex-ship (DES) price. According to the Ogra notification, the RLNG prices for the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) had undergone changes in both transmission and distribution segments. For the SNGPL, the new transmission price has been set at $10.8338 per million British thermal units (mmBtu), down from $11.0154, reflecting decrease of $0.1816, or 1.65%. The distribution price has been revised to $11.5787 per mmBtu from $11.7816, marking decrease of $0.2029, or 1.72%. Similarly, the SSGC's transmission price has been decreased from $9.7284 per mmBtu in June to $9.4713 in July, a decline of 2.64%. However, the distribution price has also gone down from $10.8650 per mmBtu to $10.5737, a reduction of $0.2913, or 2.68%.
Business Recorder
16-07-2025
- Politics
- Business Recorder
NA body slams Ogra over unregistered LPG tankers in KP and theft in Sindh
ISLAMABAD: The National Assembly Standing Committee on Planning, Development and Special Initiatives, while drawing attention to the unchecked and hazardous sale of LPG in plastic bags in Khyber Pakhtunkhwa and rampant theft in Sindh, sharply criticised the Oil and Gas Regulatory Authority (Ogra) for regulatory lapses, particularly regarding the vast number of unregistered LPG tankers operating across the country. Of the estimated 2,000 bowsers in circulation, only 800 are reportedly registered with the Department of Explosives and just 247 are licensed by OGRA—revealing a significant oversight gap. This was revealed before the committee which met with Syed Abdul Qadir Gillani in the chair here on Tuesday. The session opened with a critical discussion on the Multan LPG tanker explosion of 27th January 2025. Expressing serious concern, Chairman Gillani remarked, 'Such incidents are becoming rampant, and providing meagre aid to victims is not a solution. This must stop—we must identify and hold those responsible.' Committee members echoed these sentiments, drawing attention to the unchecked and hazardous sale of LPG in plastic bags in Khyber Pakhtunkhwa and rampant theft in Sindh. Questions were raised about the lack of surveillance, low inspection frequency, weak tracking mechanisms, and poor coordination between OGRA and the Explosives Department. The OGRA officials responded that a regional office had been opened in Multan and awareness campaigns were underway. They acknowledged the scale of unregulated operations and admitted that current laws are insufficient. The OGRA requested parliamentary support for legislative amendments to strengthen penalties and enforcement. The OGRA chairman stated that actions are being taken against illegal LPG tankers, and penalties are being made stricter. He revealed, 'We are bringing amendments to criminal laws. Previously, the penalty was six months imprisonment and a fine of Rs3,000. Now, through amendments, a proposal is to impose 10 years imprisonment and a fine of Rs20 million.' MNA Dawar Kundi criticised the previous meagre fine, asking, 'Such a small fine, why were the licenses of these tankers not canceled?' MNA Saleemur Rehman expressed outrage, stating, 'OGRA has committed injustice; CNG is being openly sold next to the Swat Motorway.' Major (retired) Tahir Iqbal questioned, 'Does OGRA have a system for checking tankers? Tracking should also be done.' He further suggested that 'increasing penalties will do nothing; suspending licenses is the right action.' The committee referred the matter of illegal and substandard LPG tankers to the Standing Committee on Petroleum and directed that answers to committee members' questions be provided in the next meeting. While contractors involved in the Multan incident are reportedly under review, the Committee expressed dissatisfaction with the accountability process and the compensation announced—deeming Rs600,000 grossly inadequate for lives lost. Members called for immediate suspension of licenses for those under investigation and urged the introduction of stringent safety and inspection protocols. The committee resolved to revisit the matter in the next session with a detailed presentation on the registration, licensing, and enforcement framework. A major agenda item was the presentation of the Sub-Committee's report by its Convener, Syed Samiul Hassan Gillani, concerning the execution of development projects—especially those formerly overseen by the Public Works Department (PWD) and subsequently transferred to provinces. Gillani appreciated the cooperation of federal ministries, including Finance, Planning, and Housing, shared the achievements of the sub-committee's performance while also highlighting persistent issues in coordination and project execution. Concerns were raised about the operational capacity of Pakistan Infrastructure Development Company Limited (PIDCL) and several issues which led to unnecessary delays. The committee chairman directed that the matter of development projects be discussed in the subcommittee. To address these challenges, the committee reconstituted its sub-committee, again placing Syed Samiul Hassan Gillani as convener. The sub-committee will review the status of ongoing PWD-linked projects and submit its findings within 30 days. It was unanimously noted that merely transferring personnel from PWD to PIDCL without addressing the underlying issues of inefficiency and corruption would be ineffective. While some members supported reforming and reviving PWD with stronger oversight, others advocated for establishing a new, competent institution for federal-provincial project coordination. The committee stressed that executing agencies must have adequate capacity and that elected representatives should have the discretion to select implementing partners for their constituencies. Additionally, the committee deliberated on the province-wise allocation of new Public Sector Development Programme (PSDP) projects for fiscal year 2025-26. The Ministry of Planning briefed the committee on PSDP projects while saying that 1,077 projects were placed in PSDP last fiscal year while 344 projects were completed last fiscal year. A total of 172 development projects were placed in PSDP in Punjab last fiscal year, and Rs116 billion were allocated for Punjab's development projects. Further, Rs53 billion were allocated for 102 projects in Khyber Pakhtunkhwa last year. Sindh had 117 projects last year and Rs171 billion were allocated last year. Balochistan had 186 projects last year and Rs93 billion were allocated. The committee sought details of projects for Narowal in the next meeting. The Ministry of Planning was directed to present a detailed breakdown—district-wise and division-wise—in the next meeting. The members also voiced concern over recurring infrastructure damage caused by seasonal floods. The committee urged the formulation of a comprehensive national flood prevention and mitigation policy, emphasising a shift from reactive to preventive planning. It was agreed that the matter would be explored further with relevant federal and provincial stakeholders. Copyright Business Recorder, 2025
Express Tribune
15-07-2025
- Business
- Express Tribune
Govt raises fuel prices again for next fortnight
Government has once again announced an increase in petrol and diesel prices, following a continued upward trend in global crude oil prices and growing economic challenges, according to a notification issued by the Finance Division late Tuesday night. The Finance Division confirmed that petrol prices have been raised by Rs5.36 per litre, while diesel prices have increased by Rs11.37 per litre. This revision will take effect immediately from July 16, impacting millions of motorists and transport operators across the country. The price of petrol has increased from Rs266.79 to Rs272.15 per litre, while high-speed diesel (HSD) now costs Rs284.35 per litre, up from the previous Rs272.98. The government stated that the rise in fuel prices is a result of fluctuating international market trends, which have driven up global oil prices. Fuel prices in Pakistan are reviewed fortnightly, with adjustments based on changes in international oil prices and the local currency exchange rate. On July 1, the federal government had increased petrol and diesel prices significantly for the first fortnight of the month, attributing the hike to global market volatility amid the 12-day Iran-Israel conflict. Read More: Govt sticks to the script, hikes fuel prices again Petrol rose by Rs8.36 to Rs266.79 per litre, and high-speed diesel by Rs10.39 to Rs272.98, based on the Oil and Gas Regulatory Authority's (OGRA) recommendation. Pakistan, which imports around 85% of its petroleum needs, was directly impacted by the Middle East crisis.
Business Recorder
15-07-2025
- Business
- Business Recorder
Fuel prices likely to increase
ISLAMABAD: Petrol and diesel prices in Pakistan are expected to increase by up to Rs6.60 (2.5 percent) per litre for the next 15 days starting from July 16, 2025, according to an estimate of the petroleum industry. The estimated increase includes Rs6.60 per litre increase in petrol and Rs5.27 per litre (1.9 percent) rise in High-Speed Diesel (HSD). However, other petroleum products - kerosene oil and Light Diesel Oil (LDO) - may witness reductions of Rs3.74 (2 percent) and Rs2.23 per litre (1.3 percent), respectively. The estimates are based at Rs78.02 per litre Petroleum Levy (PL) and CSL on petrol and Rs77.01 per litre PL/CSL on HSD. Inland Freight Equalization Margin (IFEM) is assumed at Rs8.89 per litre on petrol and Rs6.04 per litre on HSD. Exchange rate adjustment on petrol may be Rs3 per litre on petrol and Rs2 per litre on HSD. Govt hikes petrol price by Rs8.36, diesel by Rs10.39 per litre According to the estimates, the premium on petrol is $9.68 per bbl and $3.25 per bbl on HSD. The Oil and Gas Regulatory Authority (OGRA) will finalise its recommendations on 15 July based on the latest global market trends and government's budgetary target of PL and carbon tax and Finance Division will announce new petroleum prices. In case the estimates of oil industry implements, the price of petrol would go up from Rs266.79 per litre to Rs273.39 per litre and HSD's price would rise from Rs272.98 to Rs278.25 per litre. On July 1, the federal government has increased petrol and HSD prices significantly attributing the hike to global market volatility amid the Iran-Israel war. Petrol increased by Rs8.36 to Rs266.79 per litre, and HSD by Rs10.39 to Rs272.98, based on OGRA's recommendation. Pakistan imports refined petrol around 85 percent of its petroleum consumption and 15 percent crude oil. Copyright Business Recorder, 2025
