The National Petroleum Corporation of Pakistan has reduced the price of high-octane gasoline by 15 rupees per liter. Now, the price of HOBC is fixed at Rs 142 per liter.
HOBC’s previous selling price was as high as 157 rupees per liter. Due to deregulation, the Oil and Gas Regulatory Authority (OGRA) has no power to determine the price of HOBC.
Nadeem Babar said he has written to OGRA to investigate the high prices of high-octane gasoline charged to consumers. He added that legally speaking, it is the duty of the regulator to monitor prices.
In answering the question, he said that it would change the way oil prices are determined. Oil companies and oil refineries have suffered losses due to falling oil prices in the international market. Oil companies are now trying to make excessive profits to make up for these losses.
He said that if oil companies suffer inventory losses due to falling prices, they will also benefit from rising prices. Obviously, the price of high-octane gasoline should fall, but this is not the case.
“Our pricing system fails in a volatile price environment,” the special assistant said. We are going to change our 15 year old pricing system.
Nadeem Babar said that the ban on oil imports was lifted three weeks after the implementation. Because the prices continued to fall, oil companies did not import oil.
He said he had asked oil companies to formulate import plans for the next two months, and asked refiners to make import plans for three months. Oil prices fell sharply around April 20, and the ban was lifted on April 15.
The Petroleum Special Assistant clarified that oil companies must abide by the terms of the oil storage license and has requested OGRA to revoke the licenses of unqualified oil companies.