The government on Thursday increased prices of petroleum products in a range between Rs 3.53 and Rs 4.35 per litre and the revised prices would be effective from Friday (today). According to a notification issued by the Oil and Gas Regulatory Authority after getting approval from the Ministry of Petroleum and Finance, the price of petrol was increased by Rs 3.53 per litre, kerosene oil by Rs 3.79 per litre, Light Diesel Oil (LDO) by Rs 3.93 per litre, High Octane Blending Component (HOBC) Rs 4.40 and the price of High Speed Diesel (HSD) was raised by Rs 4.35 per litre.
According to officials, the increase would help yield additional income for the government. The government, they estimated, was collecting highest portion of taxes from the oil and gas sector. At present, different petroleum products are being sold at following prices: HOBC at Rs 129.96 per litre, kerosene oil at Rs 99.9 per litre, HSD at Rs 109.21 per litre, LDO at Rs 94.33 per litre and petrol at Rs 103 per litre. After the revision, new prices will be as follows: Petrol Rs 106.6 per litre, HSD Rs 113.56 per litre, LDO Rs 98.26 per litre and kerosene oil will be sold at Rs 103.69 per litre.
The ministry of petroleum, however, wanted Ogra to also take into account decisions of the Economic Co-ordination Committee (ECC), which on February 26 approved an increase of 10 paisa in the margin of Oil Marketing Companies (OMCs), passing on a higher price increase to consumers than originally worked out by the regulator. Dealers are currently getting Rs 2.3 per litre commission on petrol and Rs 2.2 on HSD. Similarly, OMCs are getting a margin of Rs 1.58 per litre on petrol and Rs 1.76 on High-Speed Diesel.
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