ISLAMABAD: A dispute has emerged between the petroleum industry and the government after oil marketing companies (OMCs) and refineries, alleged that the Oil and Gas Regulatory Authority (OGRA) made errors in calculating the latest reduction in petroleum prices.
According to industry representatives, OGRA did not accurately account for international fuel premiums and Platts benchmark averages during the latest fortnightly price review. They claim the alleged miscalculation resulted in a reduction of nearly Rs45 per litre in the price of high-speed diesel and around Rs11 per litre in petrol beyond what they consider justified.
The OMCs and refineries contend that the regulator failed to fully incorporate prevailing import premiums and benchmark prices used to determine the cost of imported petroleum products, imposing financial losses on the downstream oil sector.
The allegations have intensified tensions between the petroleum industry and the regulator, with industry stakeholders calling for a review of the pricing calculations.
OGRA had not publicly responded to the allegations at the time of filing, and the claims made by OMCs and refineries could not be independently verified.
Meanwhile, reports suggest consumers may receive another reduction in petroleum prices in the next fortnight. According to official sources, OGRA has forwarded a summary to the prime minister proposing a cut of between Rs20 and Rs50 per litre in line with declining international crude oil prices.
The proposed reduction follows last week’s sharp decrease in fuel prices, when the government lowered the prices of petroleum products by as much as Rs74 per litre amid continued weakness in global oil markets.
