The government has announced the reduction in the prices of petroleum products by announcing the good news to the people before the start of the New Year 2019 on special recommendation of Oil and Gas Regulatory Authority (OGRA). Few days ago, while sending a summary to the Ministry of Petroleum, it was recommended to reduce petroleum product prices by 15 rupees.
During the last few weeks, prices of petroleum products have been reduced globally and this month the global oil prices fell at the lowest level of the last one and half year, after which Pakistan also expected to declare prices. The Oil and Gas Regulatory Authority (OGRA) had recommended a reduction in petroleum prices by up to 13.5 per cent, keeping in line with the declining global trend in oil markets.
The regulatory authority had suggested that prices of petrol be reduced by Rs: 9.50 per litre (10pc) to Rs: 86.33, kerosene oil by Rs: 0.25 to Rs: 83.25 and LDO by Rs: 2 to Rs: 7.44 per litre for January 2019. The recommendations of the regulator were based on a drop in crude oil prices and petroleum fuel in the international markets.
International crude prices reached a high in early October but then dropped to an 18-month low in November. Experts in oil marketing said that higher US supplies coupled with record production from Saudi Arabia and Russia, would flood the market while the global economic slowdown would cut into demand.