ISLAMABAD: The federal government has announced to maintain the prices of petroleum products for second half of February at the existing level under the pressure from general public and political parties.
Rejecting a hike in prices of all petroleum products suggested by the Oil and Gas Regulatory Authority (OGRA), Prime Minister Imran Khan has announced to keep the prices of petroleum products unchanged for the next half of February.
The hike in price has been recommended in view of the global rise in the prices of petroleum products.
However, the federal government adjusted the increase by revising rate of ex-factory and the petroleum levy (PL).
The regulator had worked out an increase in ex-depot price of petrol by Rs14.07 per litre.
The proposed increase in ex-depot price of high speed diesel (HSD) was recommended at Rs13.61 per litre.
The regulator proposed an increase of Rs10.79 per litre in price of kerosene oil (SKO) and an increase of Rs7.43 per litre in the price of light diesel oil (LDO).
Following guideline of the federal government, the regulator has applied method to determine the POL prices at a higher side of the tax bracket through which it was sending inflated figures of the proposed oil prices to the government.
This helps the government to pass on actual increase in the global POL prices to consumers in the recent months.
While adjusting the fuel price with effect from January 16th, the government claimed that despite the regulator proposing a big increase, the consumers are not burdened with any raise in the fuel prices.
In the first half (February 1 to February 15) the government imposed PL at the rate of Rs21.04 per litre on petrol and Rs22.11 on the HSD.
The government had inserted a provision in the finance bill to set a ceiling of the rate of PL at Rs30 per litre on the products.
The government is also charging 17 percent general sales tax (GST) on petroleum products.
Based on the GST and budgeted rate of petroleum levy, the regulator had worked out an increase.
During the last two-and-a-half months, the government had increased the price of petrol by Rs11.21 per litre, HSD Rs14.64, SKO Rs14.90, and LDO Rs16.37 per litre.
The government has reduced the PL rate for second half of February by Rs 3.07 per litre to Rs 17.97 per litre from Rs 21.04 per litre on petrol. Ex-refinery price has been increased by Rs 3.03 per litre to Rs 67.34 per litre from Rs 64.31 per litre. The rate of general sale tax, however, is Rs 16.26 per litre at the level of first half of February.
Copyright Business Recorder, 2021
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