ISLAMABAD: The government is likely to increase the prices of key petroleum products by about Rs6 per litre, sources said on Friday.
According to sources, a working paper from the Oil & Gas Regulatory Authority (OGRA) had been received at the Ministry of Finance which worked out about Rs6 per litre increase in the price of petrol and HSD for May 1-15 period.
On April 15, the PTI-led federal government had announced a reduction of Rs1.79 per litre in the price of petrol, announced Federal Minister for Finance Hammad Azhar.
Taking to Twitter, the federal minister announced that the government has reduced the price of petrol by Rs1.79, following which it will be sold at 108.56 per litre from April 16.
The premier has also approved reducing the prices of other petroleum products, Azhar said, adding High-Speed Diesel (HSD) would be sold at Rs110.76 per litre, after a deduction of Rs2.32.
Kerosene, after a reduction of Rs2.06 in its rates, will be sold at Rs80 per litre, while Light Diesel Oil will be available at Rs77.65 per litre.
The Prime Minister has approved a reduction in petrol prices by Rs 1.79 and the price of diesel by Rs 2.32 applicable from tomorrow.
Reductions in kerosene and light diesel oil too as per below: pic.twitter.com/ubT0Re7j6t
— Hammad Azhar (@Hammad_Azhar) April 15, 2021
In the first six months of the current fiscal year the Ministry of Finance had already accumulated nearly 30 per cent higher than targeted revenue on petroleum products through petroleum levy.
Thus, it was comfortable with minor adjustments in petroleum levy. As per finance ministry, the collection on account of petroleum levy amounted to Rs275 billion in the first six months against the annual target of Rs450bn.
The government has been tweaking with petroleum levy rates instead of GST as the former remains in the federal kitty while the latter goes to the divisible pool of taxes and thus about 57pc share is grabbed by the provinces over the last two years.