The government did not pass on the impact of international petrol price increase to the local consumers by providing a subsidy of Rs 1.36 billion to maintain the oil prices at the existing level during the month of August. The government has approved a reduction of Rs 0.31 per litre in kerosene oil price and reduction of Rs 0.81 per litre in Light Diesel Oil (LDO).
The Oil and Gas Regulatory Authority (Ogra) has forwarded a summary to the Ministry of Petroleum and Ministry of Finance after calculating the international oil price trends, according to the working paper submitted to the government, Ogra has proposed an increase of Rs 1.45 per litre for petrol, Rs 4.10 per litre for High Octane Blending Component (HOBC) and Rs 0.35 for High Speed Diesel. It also recommended a reduction of Rs 1.10 per litre in the price of kerosene and Rs 1 in that of light diesel oil.
The government charges Rs 6 to Rs 14 per litre as petroleum levy and 16 percent general sales tax on all products. The government during July has first rejected a summary forwarded by Oil and Gas Regulatory Authority's (Ogra) seeking an increase in the prices of petroleum products for the month of July and decided to maintain the rates by providing a subsidy of Rs 510 million.
Last month, the regulatory body worked out an increase of Rs 0.84 per litre in the price of petrol, Rs 3.63 per litre in the price of High Octane Blending Component (HOBC), Rs 0.30 per litre in kerosene, Rs 0.27 per litre in high speed diesel and Rs 0.22 per litre in light diesel.
It may be mentioned here that the government also provided a subsidy of Rs 1.78 billion to keep the petroleum prices unchanged for the month of June. Since June different petroleum products are being sold on following rates: Petrol at Rs 107.97 per litre, high speed diesel at Rs 109.34 per litre, light diesel oil at Rs 94.13 per litre, HOBC at Rs 134.63 per litre and kerosene oil at Rs 97.40 per litre.
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