ISLAMABAD

The Oil and Gas Regulatory Authority (OGRA) on Tuesday recommended to the government up to 1.21 percent decrease in the prices of High Speed Diesel and Motor Spirit and increase of up to 3.5 percent in the rates of other petroleum products.

For the month of October OGRA has advised decreasing the price of petrol by 10 cent per litre and Rs 2 per litre in the price of High Speed Diesel (HSD), while an increase of Rs 2 per litre has been recommended in the prices of Kerosene Oil, High Octane Blending Component (HOBC) and Light Diesel Oil (LDO), it is learnt reliably here.

According to the summary moved by OGRA to the Ministry of Petroleum and Natural Resources and the Ministry of Finance the decrease of Rs 2 per litre or 1.21 percent has been recommended in the prices of the High Speed Diesel. After the reduction the price of HSD will come down to Rs 80.79 from the current Rs 82.79 per litre.

Similarly a nominal reduction of ten pennies has been recommended, by OGRA, in the prices of Motor Spirit (Petrol), after the reduction the price of petrol will come down to Rs 73.63 from the current Rs 73.73 per litre.

OGRA has advised Rs 2 per litre or 3.5 percent increase in the prices of Kerosene Oil, the new price of Kerosene will go up to Rs59.11 from the current Rs57.11 per litre.

A reduction of Rs 2 per litre or 2.5 percent has been recommended in the prices of Octane Blending Component (HOBC) after the increase the new price of HOBC will go up to 81.79 from the existing Rs79.79.

A decrease of Rs 2 or 3.73 percent has been advised in the price of Light Speed Diesel oil, the new price of Rs55.59 from the current Rs 53.55 per litre.

It is pertinent to mention here that last month the Oil and Gas Regulatory Authority recommended to the government 8 to 12 percent decrease in the prices of different POL products for September. However to cover its revenue deficit the government did not pass on the total benefit to the consumers and has announced a decrease of Rs 3 per litre in the prices of the all the POL products.

Similarly instead of transferring the full benefit of falling international oil prices to the consumers the government has increased General Sales Tax on POL products, to cover its revenue deficit, and against the standard 17 percent GST the government is collecting much higher rate of the tax on petroleum products. The government is collecting 45 percent GST on High Speed Diesel (HSD), 25.5 percent on Motor Spirit (Petrol), 30 percent on Kerosene Oil, 29.9 percent Light Diesel Oil(LDO) and 24 percent on High Octane Blending Components (HOBC) is 29.9 percent.

In light of the OGRA summary, the Finance Ministry will make the final decision after consulting with the prime minister and will announce its decision regarding the POL prices today (Wednesday).