The Oil and Gas Regulatory Authority (Ogra) has cautioned against speculation on petroleum prices, following recent statements by two caretaker federal ministers who had hinted at a reduction in prices in the next fortnightly review.
Ogra advised against speculation as the prices are determined by international market prices and the exchange rate. The international prices have been surging recently, which could offset any anticipated relief.
The authority said that it is closely monitoring the international oil market and will make a decision on the next price revision in accordance with the prevailing market conditions.
In the past, the regulator routinely urged journalists not to speculate on petroleum prices even when it formally sent working papers to the government a day before the announcement of new prices.
However, this time, the federal cabinet ministers started the speculations a week after the government increased the prices by Rs26 per litre. The massive surge came on the back of cash flow constraints, dwindling foreign exchange and high financing costs.
Between August 15 and September 15, petrol and high-speed diesel (HSD) prices have increased by Rs58.43 and Rs55.83 per litre, respectively.
