ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) yesterday recommended cut in prices of petrol and high-speed diesel (HSD) by Rs 3.30 and Rs 2.70 per litre, respectively, but suggested increase in the rate of kerosene oil by Rs 11 per litre and that of ight diesel oil (LDO) by Rs 7 per litre.

As per a working paper moved to the Ministry of Petroleum and Natural Resources and the Ministry of Finance, the Ogra proposed cut in the price of petrol by 4.53 percent or Rs 3.30 per litre and that HSD by 3.32 percent or Rs 2.70 per litre.

In case the government approves the Ogra summary, petrol price will go down to Rs 69.50 per litre from the current Rs 72.80 and diesel to Rs 78.70 from the current Rs 81.40 per litre. The price of kerosene oil will rise to Rs 55 per litre from the existing Rs 44 per litre and that of LDO to Rs 51 from the existing Rs 44 per litre.

For the month of May, the Ogra had advised the government to decrease petrol and HSD prices by Re 1 per litre, but the summary was rejected to pass on the benefits of the low international prices to the consumers. Similarly, for the month of June, the Ogra had proposed reduction in the diesel price by Rs 3.31/litre and petrol by Rs 2.43/liter, advising increase in kerosene oil price by Rs 13.54/litre and LDO by Rs 9.28 a litre. However, rejecting the Ogra recommendation, the government only made a decrease of Rs 1.60 per litre and Rs 1.20 per litre, respectively, in the prices of HSD and petrol. According to the government, it has to meet about Rs 110 billion shortfall in revenue due to the provision of subsidy on petroleum products.

Instead of decreasing the prices of petroleum products, in May and June, the government increased GST on petrol and HSD from 15.5 percent to 19.5 percent and 29.5 percent to 34.5 percent, respectively.

Currently, the government is collecting 34.5 percent GST on HSD and 19.5 percent GST on Motor Spirit excluding High Octane Blended Component while there is zero GST on kerosene and LDO.

The government will announce its decision regarding the OGRA summary today (Friday).