After an increase in price of petrol globally, Oil and Gas Regulatory Authority (Ogra) has recommended an increase in the prices of petroleum products in monthly review for May 2018. The regulator has recommended in a summary to the Petroleum Division that the price of petrol be increased by Rs 3.22 per liter (3.7 percent), which would take the rate up to Rs 89.22 per liter from the existing price of Rs 86.00 per liter. Petrol is the primary fuel for vehicles and with the suspension of indigenous gas supply to CNG stations, especially in Punjab, its consumption has gone up.
However, other than petrol, the summary has recommended increases in the rates of other petroleum products for May. Consumers of high speed diesel (HSD) may face an increase of Rs 5.02 (5.2 percent), which would take its price to Rs 101.47 per liter from the existing Rs 96.45 per liter.
The price of kerosene oil may be increased from Rs 76.46 to Rs 83.43 per liter with an increase of Rs 6.97 per liter (9.1 percent). Kerosene oil is used in remote areas for cooking purposes, where liquefied petroleum gas (LPG) is not available.
Similarly, LDO, which is mainly used for industrial purposes, may witness a hike of Rs 6.95 (10.6 percent) per liter, increasing its price from Rs 65.30 per liter to Rs 72.25 per liter.
The Ministry of Energy (Petroleum Division) received the summary from the Ogra on Friday. At present, two types of taxes are being charged from consumers - petroleum levy and general sales tax. The government is charging higher rate of general sales tax at 31 percent on HSD, which is widely used in agriculture and transport sectors, while 17 percent is being charged on other petroleum products. In addition, the government is charging Rs 8 per liter petroleum levy on HSD, Rs 10 per liter on petrol, Rs 6 per liter on light diesel oil and Rs 3 per liter on kerosene oil.