ISLAMABAD -  The Oil and Gas Regulatory Authority (Ogra) has recommended an increase of up to 29.5 percent in the prices of POL products for the month of April.

In its recommendations, the Ogra has advised the government to increase Petrol and High Speed Diesel (HSD) prices by Rs2 per litre, respectively. According to a working paper sent to the Ministry of Petroleum and Ministry of Finance, the Ogra has suggested 2.74 percent or Rs2 per litre increase in the prices of Motor Spirit (Petrol) and increase of 2.43 percent or Rs2 per litre in the price of High Speed Diesel (HSD) has been proposed. Similarly, double digit increase has been proposed in the price of Kerosene oil while Rs7.75 increase per litre was recommended in the price of Light Diesel Oil (LDO).

It is pertinent to mention here that during last three months the government has multiple times rejected the Ogra’s recommendations regarding hike in Kerosene and LDO prices. The Ogra’s summary recommended an increase of 29.5 percent or Rs13 per litre in the price of Kerosene oil and 17.6 percent or Rs7.75 increase in the price of Light Diesel Oil (LDO).

According to the summary, an increase of Rs2 per litre has been recommended in the price of Petrol, and if the government approves the same increase price of petrol will go up from the current Rs73 to Rs75 per litre.

Similarly, after an increase of Rs2 per litre in HSD its price will go up to Rs84 from the current Rs82 per litre. The prices of Kerosene Oil after an increase of Rs13 will go up to Rs57 per litre from the existing Rs44 per litre and the price of Light Diesel Oil (LDO) will go up with an increase of Rs7.75 per litre from the current Rs44 per litre to Rs51.75 per litre.

When contacted about the recommended increase in the POL prices despite the decrease in the international market, the Ogra official on the condition of anonymity said that actually the Kerosene and LDO prices are being determined on the average of previous month import price. The prices of Kerosene and LDO were high during the month of February and decreased in March. Since the Ogra determines the prices of Kerosene and LDO on the basis of previous month, February, therefore it recommended a hike in the prices. The official said that for the month of May the Ogra will make determination for Kerosene and LDO on the basis of the import prices of March.

Similarly, the official said that the prices of Petrol and HSD are being determined on the basis of five days average of import. Since the prices of Petrol and HSD were increased in the international market during the five days under consideration therefore the Ogra has recommended an increase, the official added.

Currently, the government is collecting 30 percent GST on High Speed Diesel and 15.5 percent GST on Motor Spirit excluding High Octane Blended Component (HOBC) while there is zero GST on Kerosene and LDO.

The government will announce its decision regarding the Ogra’s recommendation today (Friday). It is pertinent to mention here that since February the government has three times increased the prices of the Petrol and HSD in the country.