In view of the fluctuation in global oil prices, Oil and Gas Regulatory Authority (Ogra) on Wednesday recommended an increase of Rs 1.48 per liter in price of petrol (MS 92 RON) for the month of December. The regulator has recommended an increase in the prices of petroleum products of up to 28.9 percent after the rates of crude oil surged in international market. The Ministry of Petroleum received a summary from the Ogra that recommended an upward revision in oil prices.
The Ogra recommended increase of Rs 1.48 per liter in the price of petrol [MS 92 RON], Rs 15.35 per liter in the price of superior kerosene oil (SKO) and Rs 13.15 per liter increase in the price of light diesel oil (LDO). In case the government approves the Ogra determination about the increase in prices of various petroleum products, petrol price will go up to Rs 77.47 per liter from the current Rs 75.99. The prices of SKO after an increase of Rs 15.35 will go up to Rs 68.54 per liter from the existing Rs 53.19 per liter and the price of Light Diesel Oil (LDO) will go up with an increase of Rs 13.15 per liter to Rs 62.15 from existing Rs 49.00 per liter.
After deregulation of High Speed Diesel (HSD), the revised Pakistan State Oil (PSO) weighted average ex-refinery price of HSD along with its IFEM is also worked out effective from December 1. The PSO increased ex-refinery price of HSD by Rs 1.20 but reduced the price by Rs0.16 of IFEM. After the increase, the price of HSD will go up to Rs 51.27 from existing Rs 50.07 and IFEM's price will reduce to Rs 1.26 from Rs 1.42.
In the past couple of years, following a plunge in global crude prices, the government has burdened petroleum consumers with general sale tax and petroleum levy. The Ogra proposed GST rate on various products at the rate of 17 percent to maintain price stability and earn higher revenue. On the recommended prices of Ogra, the Federal Board of Revenue (FBR) will charge 17 percent GST on petrol, LDO and SKO. Apart from 17 percent GST, the petroleum levy will likely to charge at the rate of Rs 10.00 on petrol, Rs 6.00 on SKO and Rs 3.00 on LDO.
The summary was forwarded to the Petroleum Ministry as a routine practice. The Petroleum Ministry will send the summary onward to the Finance Ministry and Prime Minister's office for a decision. Under the practice, oil prices are revised on the last day of every month.