ISLAMABAD: The government is likely to pass on hike in oil prices in global market to the domestic consumers.
A summary sent to the federal government by the Oil and Gas Regulatory Authority (OGRA) recommended an increase in petroleum product prices up to Rs 8.50 per liter. There is strong possibility that the government will increase petroleum products prices substantially..
The brent prices in global market have soared up to $ 90 plus and it could result in further upward revision in their rates in Pakistan.
Pakistan is heavily dependent on import of petroleum product prices as its domestic production makes only 20% of total use .
Pakistan’s oil import bill used to range between $ 5.5 billion to $ 6.5 billion but due to sharp rise in brent prices in international market it may shoot up by almost 100% to take the import bill for the current fiscal year .
Prime minister , Imran Khan , is ultimate authority to decide the issue of revision in oil prices. Since the prime minister had rejected a summary of OGRA for increase in petroleum prices last fortnight that added Rs 30 billion on the national exchequer in terms of less revenue collection and for obvious reasons the government may not absorb difference in value of price of petroleum prices.