Ogra recommends up to 24pc hike in petroleum prices
ISLAMABAD – Oil and Gas Regulatory Authority (Ogra) has recommended an increase of Rs 4.06 in the price of petrol and Rs 6.03 per litre in the rate of High Speed Diesel (HSD) for the month of January.
According to a working paper moved to the Ministry of Energy (Petroleum Division) and the Ministry of Finance, OGRA has recommended an increase of up to 24 percent in the prices of different petroleum products, it was learnt reliably here. The Ogra also proposed an increase of Rs13.58 per litre in price of superior kerosene oil and Rs 12.49 per liter increase in light diesel oil (LDO) rate.
Ogra has proposed to increase petrol rate by 5.02 percent or Rs 4.06 per litre. For HSD, the regulatory body has recommended an increase of 11.4 percent. It is pertinent to mention here that the Economic Co-ordination Committee (ECC) deregulated margins on HSD for oil marketing companies (OMCs) and dealers. The ECC approved the deregulation of HSD price with a directive that the impact of the policy would be reviewed after three months. The Ogra would develop a mechanism to monitor the OMCs commercial stock position, inventory system and fuel marker system.
After deregulation of High Speed Diesel (HSD), the increase in Pakistan State Oil (PSO)’s weighted average ex-refinery price of HSD along with its Inland Freight Equalization Margin (IFEM) has been worked out for the month of January. OGRA recommended an increase in ex-refinery price of HSD by Rs 5.83 per litre or 11.4 percent and increase of Rs 0.20 per litre or 15.9 percent in IFEM. After the increase, the weighted average price of HSD will go up to Rs 57.10 from existing Rs 51.27 and IFEM’s price will be increase to Rs 1.46 from Rs 1.26 per litre. The government has also deregulated margins of oil industry on high speed diesel and they would determine its price based on weighted average price of PSO. The dealer and OMC margin will be decided by the OMCs while GST and Petroleum Development Levy (PDL) will be determined by the petroleum and finance divisions.
According to a working paper, the regulator Ogra proposed an increase of Rs13.58 per litre in price of superior kerosene oil and Rs 12.49 per liter increase in light diesel oil (LDO), which meant a hike of 23.6 percent per litre and 24 percent per litre respectively.
In case the government approves the determination of the regulator about the increase in prices of various petroleum products, petrol price will go up to Rs81.53 per litre from the current Rs 77.47. The prices of SKO will go up to Rs 71.16 per litre from the existing Rs 57.58 per litre and the price of Light Diesel Oil (LDO) will go up to Rs 64.61 from existing Rs 52.12 per litre.
Against the standard rate of 17 percent general sales tax (GST), currently the government is charging 31 percent GST on high speed diesel (HSD) and 17 per cent on other petroleum products including petrol, kerosene oil and LDO. In addition to GST, government was charging highest rates of Petroleum Development Levy (PDL) from the consumers. Currently, the consumers are paying Rs 10 per litre petroleum development levy on petrol, Rs 6 per litre on kerosene oil and Rs 3 per litre on LDO.