ISLAMABAD - The federal government on Thursday increased the price of petrol by Rs2 per litre with effect from September 1. The prices of other petroleum products have not been unchanged for the month of September.
Finance Minister Ishaq had taken Prime Minister Shahid Khaqan Abbasi on board about the new price regime.
It was decided by the prime minister that the prices of high-speed diesel (HSD), kerosene oil and light diesel oil (LDO) should be maintained at the current level till September 30. The new price of petrol will be Rs71.50 per litre.
On the basis of the prevailing prices in the international market, the Oil and Gas Regulatory Authority (OGRA) had recommended the increase of Rs 2.35 per litre in the price of petrol, Rs0.75 per litre in the price of HSD, Rs15.79 per litre in the price of kerosene oil and increase of Rs12.18 per litre in the price of LDO.
However, the government partially accepted the recommendations of the OGRA by increasing the petrol price only.
Meanwhile, the prices of kerosene oil would remain at the Rs 44 per litre, LDO at Rs44 per litre and the HSD price at Rs79.9 per litre.
For the months of May, June, July and August OGRA had proposed to reduce petrol and HSD prices. Instead of passing on the entire benefit of the falling international oil prices, the government has partially decreased the prices of petrol and diesel during the recent months. However, the government is continuously rejecting the OGRA’s proposals to enhance the kerosene oil and LDO prices.
Meanwhile, the Federal Board of Revenue (FBR) has issued a notification of a change in General Sales Tax (GST) on the petroleum products. The FBR would charge 17 percent GST on petrol and 30 percent GST on HSD. However, the other two products, LDO and kerosene oil, had been exempted from the GSP in order to provide relief to the masses.
