The improvement in the exchange rate, mostly in favour of the local currency, is likely to bring the prices of petroleum products down in the next fortnightly review by the oil sector regulator.
The Oil and Gas Regulatory Authority (OGRA) will meet soon to revise the petroleum prices for the next fortnight starting October 16. If the government decides to pass on this rupee-dollar parity impact to the end consumers, the price of petrol may be slashed by an estimated Rs10-15 per litre and that of diesel by Rs2 per litre, according to industry sources. The rupee fell for the second straight session on Thursday as dollar demand from importers outpaced greenback sales by exporters, who chose to sit on the sidelines in anticipation of range-bound trading in the local currency going forward, dealers said.
However, the sources added that this facilitation could be delayed owing to International Monetary Fund’s (IMF) reservations over the petroleum subsidy as Pakistan had agreed with the lender of the last resort to gradually add Petroleum Development Levy (PDL) to the prices of fuels. The addition of PDL will offset the exchange rate impact. According to the working of the oil industry, all petroleum prices are showing a declining trend worldwide; however, it is not clear if the government would pass on the impact or offset it by raising taxation.
KE cuts tariff
National Electric Power Regulatory Authority (NEPRA) issued a notification on Friday announcing a reduction in the price of electricity by Rs 4.89 per unit for K-Electric consumers, while approving a Rs 0.19 increase per unit for the consumers of ex-Wapda Distribution Companies (Discos). Both changes come on account of fuel cost adjustment (FCA) for electricity consumed in August.
