In a summary sent to the government, the Oil and Gas Regulatory Authority (OGRA) on Friday called for a Rs1 per litre reduction in the prices of petrol and high-speed diesel from May 1, 2017. However, Ogra recommended an increase of Rs 10 in the prices of Light Diesel and Rs15 per litre for Kerosene.
According to Ogra, passing on the benefit of reduced prices to consumers is necessary in the light of a drop in the international crude oil prices in April from $56 to $50. Taking imported cost and existing rates into account, Ogra calculated the revised ex-depot price of HSD at Rs 82 for May from Rs 83 per litre in April. Similarly, the ex-depot price of petrol was worked out at Rs 73 per litre for May from Rs 74 in April.
On the contrary, the new ex-depot price for kerosene was worked out at Rs 59 per litre for May in comparison to Rs 44 per litre in April, translating into a rise of Rs 15. Ogra also recommended a rise in the price of LDO to Rs 54 for May in comparison to Rs 44 for April, translating into a rise of Rs 10 per litre.
All these rates calculated by Ogra take general sales tax (GST) and petroleum levy rates into consideration, along with the prices of imports in April made by Pakistan State Oil. According to a government official, the government is likely to keep prices of fuel unchanged which will permit the government to generate much-needed revenues at the end of the FY to reduce the fiscal deficit.
