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Home Business & Stock

OGRA proposes increase in price of petroleum products

MM News Staff by MM News Staff
March 15, 2021

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) through a summary sent to the Petroleum Division has proposed an increase in the price of petroleum products, sources said on Sunday.

According to sources, keeping in view the levy suggested by OGRA it is expected that price of petrol can be augmented by Rs5.50 per litre whereas the price of diesel can be climbed by Rs6.

Although, the final decision on an increase in prices of petroleum products will be taken by prime minister Imran Khan. Earlier in March, Prime Minister Imran Khan had rejected OGRA’s proposal to increase the price of petroleum products.

In the interest of public welfare, the PM did not approve the recommendation of increasing prices of petroleum products, saying that the government will go to any lengths to provide relief to the people.

OGRA had forwarded a summary to the prime minister seeking an increase of Rs14.07 per litre in the price of petrol and Rs13.61 per litre in the price of high-speed diesel.

The authority had also recommended an increase in the price of kerosene oil by Rs10.79 per litre. OGRA had based the recommended rates on a levy of Rs30 per litre. The current rate of petroleum levy is Rs21.04 per litre on petrol and Rs22.11 per litre on HSD. The government is also charging 17% general sales tax (GST) on petroleum products.

During the last two and half months, the government had increased prices of petroleum products up to Rs16.37 per litre. Since December 1, 2020, the government has increased the price of petrol by Rs11.21 per litre, HSD Rs14.64 per litre, kerosene oil Rs14.90 per litre and LDO Rs16.37 per litre.

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