The Oil and Gas Regulatory Authority (OGRA) has recommended an increase in ex-depot prices of all petroleum products for month of January 2020. In line with the increase in prices of petroleum products globally, the OGRA has computed an increase of Rs 2.61 per liter in MS (petrol), Rs 2.25 per liter in price of high speed diesel (HSD), Rs 3.10 per liter increase in kerosene oil and Rs 2.08 per liter in price of light diesel oil (LDO).
The final approval of new petroleum price rests with the Ministry of Finance. In case, the federal government agrees to the recommendations of OGRA and passes on full impact, general public will have to face 2.3 percent raise in per liter price of MS, 1.8 percent in HSD, 3.2 percent in kerosene oil and 2.5 percent raise in per liter price of LDO for the month of January 2020.
If the federal government approves the hike in petroleum products, the price of MS will go up from Rs 113.99 per liter to Rs 116.6 per liter, HSD from Rs 125.01 per liter to Rs 127.26 per liter, kerosene oil from Rs 96.35 per liter to Rs 99.45 per liter and LDO from Rs 82.43 per liter to Rs 84.51 per liter.
The government has already increased general sales tax on all petroleum products to a standard rate of 17 percent across the board to generate additional revenue. Besides the 17 percent GST, the government has more than doubled the rate of petroleum levy on HSD in recent months to Rs 18 per liter instead of Rs 8, while levy on petrol has been raised to Rs 15 per liter, up from Rs 10. The petroleum levy on kerosene oil and LDO remains unchanged at Rs 6 and Rs 3 per liter respectively.
Copyright Business Recorder, 2019
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