ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Wednesday proposed a reduction of Rs8-10 a litre in prices of petroleum products for the next 15 days.
The regulator has prepared three proposals suggesting the same, a report said, citing sources.
Petrol was one of the main drivers of inflation after it rose to an average of Rs145.82 a litre in November. The November price is the highest recorded.
The update comes as oil futures prices dropped toward $73 a barrel on Tuesday on worries that rising coronavirus cases around the world could reduce crude demand as new doubts emerged about the effectiveness of vaccines against the Omicron variant.
Late Tuesday, the World Health Organisation (WHO) said the Omicron variant was spreading at an “unprecedented” rate, prompting markets to edge lower.
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, will meet on January 4 to decide on their output policy.
In Pakistan, an increase in levy tax will reduce the prices by up to Rs4 per litre while in case of doubling of tax, prices will remain unchanged.
The report said the government has purchased oil between $68 to $74 a barrel from the international market in the last two weeks and the relief is on the cards.
The new prices for the next 15 days are expected to be announced later today after the approval of Prime Minister Imran Khan.
Khan on December 1 rejected an OGRA proposal to further increase the prices and maintained the same for the next 15 days.
Pakistan has been grappling with high inflation that is particularly hitting the poor and middle classes and conditions under a financing facility agreement with the International Monetary Fund (IMF) to lift government revenues by increasing levies.
