ISLAMABAD: The government is likely to increase petroleum prices starting Tuesday after the Oil and Gas Regulatory Authority (OGRA) sent a summary to the Petroleum Ministry suggesting an increase.
OGRA RECOMMENDATIONS
According to OGRA, the prices of petrol should be raised by Rs3.22 per litre, diesel by Rs5.2, kerosene oil Rs6.97, and light diesel Rs6.95. After the implementation of the new prices, per litre petrol would cost Rs89.22, diesel Rs101.47, kerosene oil Rs83.43 and light diesel Rs72.25.
Besides petroleum prices, an increase has also been recommended in the levy on petroleum products. The levy could be increased by 200 per cent, as suggested in the new budget for the fiscal year 2018-19.
Under the Finance Bill 2018, tax on diesel, petroleum, crude oil and high-octane fuel would be increased from Rs10 per litre to Rs30. The same increase would be imposed on the levy of light speed diesel and gasoline, while levy on local liquefied petroleum gas could go up by 328 per cent.
The sixth budget of the incumbent government was presented on April 27 with an outlay of Rs5,932.5 billion. The budget was presented amid strong protest from the opposition benches against the full-year financial plan despite the incumbent government’s remaining three months in tenure.
DECISION BY THE PM
According to a press release by the Finance Division, despite a tough fiscal environment, the Prime Minister declined to fully take into account OGRA’s recommendations and decided to absorb almost 50 per cent of the impact of price increases recommended by OGRA – to cushion the impact of the increase on consumers.
Accordingly, the price of Petrol has been increased by Rs1.70 per litre, HSD by Rs2.31 per litre, SKO by Rs3.41 per litre and that of LDO by Rs3.55 per litre. Hence, the new price for Petrol would be Rs87.70 per litre, HSD Rs98.76 per litre, SKO Rs79.87 per litre and LDO Rs68.85 per litre.
The prices will be effective from 1st of May 2018 till midnight on 31st May 2018.
