ISLAMABAD - The Oil and Gas Regulatory Authority Friday recommended an increase of Rs5.40 per litre in the price of petrol and Rs6.2 per litre in High Speed Diesel for July 2018.

In a summary moved to the Ministry of Energy (Petroleum Division), the OGRA recommended an upward revision in the prices of all petroleum products. An increase of Rs12 and Rs10.50 was also recommended in the prices of Kerosene Oil and Light Diesel Oil respectively.

In its summary, the OGRA proposed an increase of 5.87 per cent or Rs5.4 litre increase in petrol prices. If the caretaker government accepts this recommendation then petrol prices would go up from the existing Rs91.96/litre to Rs97.36 a litre.

The regulator has also recommended an increase of 5.88 per cent or Rs6.20/litre in High Speed Diesel (HSD) price. The HSD is widely used in transport and agriculture sector. If the OGRA proposal was accepted it will increase the Diesel price from the current Rs 105.31 per litre to Rs111.51 per litre.

Similarly, OGRA has suggested an increase of 14.22 per cent or Rs12 per litre in the price of Kerosene which will increase its price from existing Rs84.34 per litre to Rs96.34 per litre. Kerosene is used for cooking purpose especially in remote areas where LPG or pipeline gas is not available. For light diesel oil (LDO), OGRA has proposed an increase of 14 per cent or Rs10.50 per litre in LDO which will increase the price from existing Rs74.99 to Rs85.49 per litre.

The government would take the final decision today (Saturday). At present two types of taxes are being charged from consumers - petroleum levy and general sales tax. The government has the capability to absorb the impact of the proposed increase in oil prices by adjusting tax rates on petroleum products.

The caretaker government on June 11 had increased prices of petrol by Rs4.260 per litre, HSD Rs6.55/litre and Kerosene by Rs4.46 litre and LDO price by Rs6.14/litre.

Earlier, the PML-N government at the end of its five-year tenure on May 31 had left the monthly decision of setting new prices of petroleum to the caretaker government and decided that the existing prices may continue till mid-night of June 7, 2018.

Currently, the government is charging 24 per cent tax on HSD, 12 per cent each on Motor Spirit and Kerosene, and 9 per cent on LDO.