The Oil and Gas Regulatory Authority (OGRA) has proposed a price increase of Rs2.75 per litre for petrol, aiming to raise profit margins for oil companies and petrol pump dealers in Pakistan. According to sources, the proposal recommends increasing the profit margin for oil companies by Rs1.35 per litre, bringing it to Rs9.22, while petrol pump dealers could see an increase of Rs1.40 per litre, raising their margin to Rs10.04. Currently, both oil companies and petrol dealers earn a profit margin of Rs8.64 per litre on diesel and petrol.
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The proposal also accounts for the costs associated with the digitization of petrol pumps. Oil companies have included an additional cost of 50 paisas per litre for digitization, while petrol pump owners have added 25 paisas per litre to cover these expenses.
This price increase follows a recent reduction in fuel prices, where the government had lowered petrol prices by Rs2.7 per litre and high-speed diesel (HSD) by Rs3.40 per litre on October 1. If approved, the new proposal could lead to higher transportation and living costs for consumers.
The government is currently reviewing OGRA’s proposal, and a final decision is expected soon.
