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ISLAMABAD: Finance Minister Miftah Ismail while highlighting the reasons why oil is expensive in Pakistan despite being cheap in the world market, said that the prices of petroleum products across the country are determined by the Oil and Gas Regulatory Authority (OGRA).
Responding to the question of famous journalist and TV host Hamid Mir on the social networking website Twitter, Miftah Ismail said, “I present to you a brief explanation of the prices of petrol and diesel in Pakistan.”
In a Twitter message, the finance minister said that Ogra takes an average of the plate prices and collects the freight and premium paid by the PSO on those prices, and multiplies it by the exchange rate. Additionally, the Ogra agency calculates the actual price of oil.
1) A brief explanation on how petrol and diesel prices are set in Pakistan. OGRA takes the average of Platt prices, adds freight and premium paid by PSO on top of these prices, and multiplies that by the exchange rate. In addition it also “trues up” the previous fortnight’s cost https://t.co/Nho7dI4vxD
— Miftah Ismail (@MiftahIsmail) August 16, 2022
The Federal Finance Minister said that petroleum prices are determined based on the price paid and the actual exchange rate paid by the PSO in rupees.
Miftah Ismail said that the price of petrol increased while the price of diesel decreased because the price paid by the PSO in the last fortnight was more than the OGRA estimate and the premium charged by the PSO on petrol.
1) A brief explanation on how petrol and diesel prices are set in Pakistan. OGRA takes the average of Platt prices, adds freight and premium paid by PSO on top of these prices, and multiplies that by the exchange rate. In addition it also “trues up” the previous fortnight’s cost https://t.co/Nho7dI4vxD
— Miftah Ismail (@MiftahIsmail) August 16, 2022
He reiterated the government’s stand on petroleum products and said that there was no change in the premium on diesel. “I repeat that not a penny of new tax or levy has been added while changing petroleum prices,” he said.