ISLAMABAD: In a fortnightly review, the federal government has decided to continue the subsidy on petroleum products for the first half of May against the recommendation of the Oil and Gas Regulatory Authority (Ogra) which had proposed an increase up to Rs20.81 per litre excluding petroleum levy (PL) and General Sales Tax (GST).

Information Minister Marriyum Aurangzeb announced Thursday (April 28) that the price of petroleum products will remain unchanged for the first half of May. In a statement, the information minister shared that Prime Minister Shehbaz Sharif, once again, decided against the OGRA decision to hike the prices of petroleum products. The regulator recommended an ex-refinery price increase by Rs9.01 per litre in the petrol price. It should be increased from Rs159.14 per litre to Rs168.14 per litre.

It further proposed a Rs20.81 per litre increase in the ex-refinery price of high-speed diesel (HSD). The new recommended price of HSD was Rs207.40 per litre against the present Rs186.59 per litre.

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Energy sources said that the expected price differential claim (PDC) payable on kerosene oil (SKO) to refineries would be Rs43.17 per litre for the period and recommended price increase is Rs162.80 per litre from the current Rs119.63 per litre. The price of light diesel oil (LDO) was proposed to increase from Rs113.46 per litre to Rs163.20 per litre.

The ex-depot price of petrol including PL and GST has been proposed to increase by Rs30.31 per litre from Rs149.86 per litre to Rs180.17 per litre. The recommended increase in the price of HSD has been Rs72.33 per litre from the current Rs144.15 per litre to Rs216.48 per litre.

The oil marketing companies (OMCs) are expecting PDC claims on petrol would be Rs30.31 per litre and Rs72.33 per litre on HSD.

The variation in dollar-rupee parity is Rs4.04 from Rs181.91 to Rs185.95 during the period. The government is estimated that it has to give subsidies and revenue loss of Rs98 billion in May and June.

Copyright Business Recorder, 2022