Ogra cautions against ‘jumping the gun’ on petroleum prices

In an unusual public rebuke, the Oil and Gas Regulatory Authority (Ogra) has advised against speculation on petroleum prices, which could “disrupt” the smooth supply chain. In a public statement on Monday, the petroleum regulator emphasised “the importance of avoiding speculations regarding the prices of petroleum products”. Even though the statement excluded any explicit reference, the caution was apparently in response to the statements by two caretaker federal ministers, who had hinted at a reduction in prices in the next fortnightly review, due on Sept 30. Their optimism was based on the improved value of the rupee, which has gone up by Rs16.24 against the dollar since hitting a record low of 307.1 in the inter-bank market on Sept 5. On Monday, Ogra pointed out that the prices are determined on the basis of international market prices and the exchange rate. While the exchange rate “has shown improvement”, there is still one week remaining before the announcement of new prices. It also added that there has been a surge in international prices recently, implying that it could offset the anticipated relief.