OGRA proposes price hike in petroleum products from April 16

The Oil and Gas Regulatory Authority (OGRA) has proposed the government to jack up per litre prices of petroleum products by upto Rs51.52 effective from April 16, 2022.

Sources disclosed that OGRA has forwarded its working to the Secretary, Ministry of Energy (Petroleum Division) for consideration and further necessary action. They said that OGRA has sought a gigantic price hike upto 35.7 per cent in the per litre prices of petroleum products from April 16, 2022 for the remaining half of the current month of April 2022. 

They said the OGRA has asked the government to approve Rs51.32 per litre (35.7per cent) in the price of high speed diesel (HSD), Rs21.30 per litre (14.2 per cent) in the price of petrol (Motor Spirit), Rs 36.05 per litre (28.7 per cent) in the price of Superior Kerosene Oil (SKO) and Rs38.89 per litre (32.9 per cent) in the price of light diesel oil (LDO) for the remaining half of the current month of April, 2022.

Existing notified petroleum levy and GST rate in petroleum product price is zero and OGRA’s working is also based on zero petroleum levy and GST rate, the sources added.

Sources in the oil industry said that the new government of Shehbaz Sharif will face public anger if it approves proposed hike in the prices of petroleum products. They, however, said that the new government is not likely to approve a hike in the prices of petroleum products ostensibly to win the sympathies of the already burdened masses.

An official of the petroleum division on condition of anonymity said that if the government does not increase the price of petroleum products then it will have to give approximately Rs30 billion worth subsidy from April 16, 2022 for the remaining half of the current month of April.