October 28, 2021: Oil and Gas Regulatory Authority (OGRA) has suggested developing ‘large scale’ storage facilities to absorb the abrupt price hike in international market and avoid its negative impact on consumers in the country.
“Industry cargo size be enhanced up to 60,000 to 80,000 Metric Tons to save freight, premiums etc and necessary facilities be developed to cope with interlink challenges at ports,” the authority gave these suggestions to the Senate’s Standing Committee on Cabinet Secretariat held the other day.
OGRA said at present, the prices of petroleum products in Pakistan were determined as per “pricing of petroleum products policy” of Ministry of Energy (Petroleum Division), keeping in view other components like levies, taxes and duties imposed by the government. “However, revision of rates levies taxes and duties is the discretion of the Federal Government.”
Under the policy, the rates of petrol (Motor Spirit) and Diesel (High Speed Diesel) were linked with the average of “Daily Arab Gulf Prices,” Pakistan State Oil’s premium and its incidental costs of cargoes imported during previous fortnight period, besides “Dollar-Rupee” parity.
