ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Thursday recommended the government to increase the petrol price by Rs 2.20 per litre and reduce the High Speed Diesel (HSD) price by Rs 1.46 per litre effective from June 1. In a summary forwarded to the Petroleum Ministry, the authority has proposed the government to increase High Octane Blending Component (HOBC) price by Rs 0.86 per litre and Light Diesel Oil (LDO) by Rs 0.7 per litre.
It has also recommended a cut of Rs 0.40 per liter in Kerosene oil price and Rs 0.38 per litre in JP-I price. Sources said the Ogra would notify new rates after a final approval of the summary in consultation with petroleum and finance ministries. The Ogra prepared the summary keeping in view international oil prices, which during the month registered a slight decrease of $1.2 per barrel, but the Pakistan State oil (PSO) at the end of the month imported a crude oil ship at an expensive rates due to which the Authority has recommended an increase in the petrol price.
"We have sent the summary to the Ministry of Petroleum and Ministry of Finance for final approval, once the government approved the summary Ogra will issue the final notification on May 31 mid night," an Ogra official said. In case the government approves Ogra summary, petrol price will go up to Rs 99.77 per litre against Rs 97.59 per litre, HOBC to Rs 124.41 against Rs 123.57 per litre and LDO to Rs 89.13 per litre against Rs 89.06 per litre while the price of Kerosene will decrease to Rs 93.79 per litre from Rs 94.17 per litre, HSD to Rs 104.60 per litre from Rs 106.06 per litre, and JP to 83.08 per litre against Rs 83.44 per litre.
On April 30, the government has reduced the price of petrol by Rs 4.71 per litre from Rs 102.30 to Rs 97.59 per litre, HOBC by Rs 8.46 per litre from Rs 132.03 per litre to Rs 123.57 per litre, HSD by Rs 2.53 per litre from Rs 108.59 per litre to Rs 106.06 per litre, LDO by Rs 4.22 per litre from Rs 89.06 per litre to Rs 93.28 per litre and Kerosene Oil by Rs 4.09 per litre from Rs 98.26 per litre to Rs 94.17 per litre. The government also reduced jet fuel prices, JP-1 price by Rs 5.21 per litre from Rs 88.65 per litre to Rs 83.44 per litre and JP-8 by Rs 5.21 per litre from Rs 88.32 per litre to Rs 83.11 per litre. Under the finance bill of 2012-13 approved as part of federal budget in June last year, the government can charge a maximum petroleum levy at the rate of Rs 10 per litre on petrol, Rs 14 on HOBC, Rs 6 on kerosene and Rs 8 on HSD.
The oil marketing companies and petroleum dealers are entitled to marketing margin of up to Rs 3 per litre. In addition, the government also collects 16 percent GST on all products. The levy brings windfall revenue for the government in case of price increase.