ISLAMABAD -  Oil and Gas Regulatory Authority (Ogra) has recommended the government to increase price of Motor Spirit (Petrol) by Rs2.24 per litre and High speed Diesel (HSD) by 70 paisas per litre for September 2017.

The Ogra also proposed an increase of Rs15 per litre in price of kerosene oil and Rs12 per liter increase in Light Diesel Oil (LDO). According to a working paper moved to the Ministry of Petroleum and Natural Resources and the Ministry of Finance, the Ogra has proposed to increase petrol by 3.220 percent or Rs2.24 per litre and High Speed Diesel by 0.90 percent or Rs0.70 per litre.

Similarly, the Ogra also recommended an increase of 39.09 percent or Rs15 per litre in the price of Kerosene oil and 27.27 percent or Rs12 per litre increase in the price of Light Diesel Oil (LDO).The government will announce its decision regarding the Ogra’s recommendation on Thursday.

In case the government approves the Ogra determination about the increase in prices of various petroleum products, petrol price will go up to Rs71.80 per litre from the current Rs69.56 and diesel to Rs78.10 from current Rs77.40 per litre. The prices of Kerosene Oil after an increase of Rs15 will go up to Rs59 per litre from the existing Rs44 per litre and the price of Light Diesel Oil (LDO) will go up with an increase of Rs12 per litre to Rs56 from existing Rs44 per litre.

It is pertinent to mention here that for the months of May, June, July and August, the Ogra had proposed to reduce petrol and High Speed Diesel 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. The government had claimed that they have absorbed the considerable impact of prices increase since April 2016 and has suffered losses in revenue in the last financial year.

On the other hand, GST on Petrol and High Speed Diesel was increased from 15.5 percent to 20.5 percent and 29.5 percent to 35.5 percent respectively, during the May, June, July and August. Currently, the government is collecting 35.5 percent GST on High Speed Diesel and 20.5 percent GST on Motor Spirit excluding High Octane Blended Component (HOBC) while there is zero GST on Kerosene and LDO.