Islamabad - The Oil an Gas Regulatory Authority (Ogra) has recommended an increase of up to 11.46 percent in the prices of different petroleum products, for the month of December, despite the recent 36 percent decrease in crude oil prices in the international market.

In a summary forwarded to Petroleum Division and Ministry of Finance, the Ogra has recommended upward revision in the prices almost all the petroleum products, sources told The Nation.

The source said that Ogra has recommended an increase of Rs 6.15 per litre (6.28 percent) in Motor Spirit (Petrol) price and Rs 2 per litre(1.77 percent)  in the price of High Speed Diesel (HSD). Similarly OGRA also proposes Rs 9.91 per litre (11.46 percent) increase in Kerosene oil and Rs 7.79 per litre (9.44 percent) in the price of Light Speed Diesel. 

In case the government approved the Ogra recommendations, the rate of petrol would increase from Rs 97.83 per litre to 103.98 per litre and High Speed Diesel from Rs 112.94 per litre to Rs 114.94 per litre. The prices of kerosene oil would go up from Rs 86.50 per litre to 96.41 per litre and Light Speed Diesel price will go up from Rs 82.44 per litre to Rs 90.23 per litre.

High speed diesel is being used in agriculture and transportation, kerosene oil is used in remote areas where LPG was not available for cooking purposes. The LDO is used in industry.

When asked about the reason for increase in POL prices despite decrease in international market the source said that the government wants to apply 17 percent GST and full Petroleum levy while making a determination of Petroleum prices for the month of December.

It is pertinent to mention here that to control the upward trend in the POL prices the PTI government has made a considerable decrease in the GST and Petroleum Levy on the petroleum products.

Presently against the standard GST rate of 17 percent the federal government is collecting 4.5 percent GST on Motor Spirit excluding HOBC, 12 percent on High Speed Diesel, 1.5 percent on Kerosene while there is no sales tax on Light Diesel Oil(LDO).Similarly against Rs 10 levy per litre on Petrol the government is collecting Rs 6.15 Petroleum Levy, on HSD against Rs 8 per litre the government is charging Rs 6.51 per litre. Similarly against Rs 6 per litre Petroleum Levy the government is collecting Rs 3 on Kerosene and against Rs 3 on LDO it is collecting Rs 0.3 per litre.

The average crude oil prices in October were around $ 77 per barrel which was decreased to around $ 50 per barrel during November or to the position of October 2016. However the government decided to use downwards trend in crude oil price in international market as an opportunity to increase its Sales tax and petroleum levy collection.  The government will announce its decision on the adjustment of petroleum prices today(Friday).