ISLAMABAD – Federal government has raised the petroleum prices in Pakistanover the recommendations of OGRA.
The prices of high-speed diesel (HSD) and petrol for March increased byalmost Rs7 and Rs4 per litre on Wednesday — the highest since October 2014due to increased rates in the international market.
Oil and Gas Regulatory Authority (OGRA) proposed a hike in the prices ofseveral petroleum products which was approved by the government just beforethe start of the new month.
*According to the sources, the government has approved an increment of Rs3.56 per litre in petrol prices and Rs 6.94 per litre *in* high-speeddiesel (HSD) prices to keep up the trend of hike in crude oil prices in theglobal market.*
Based on existing tax rates and import prices reported by Pakistan StateOil (PSO), the Oil and Gas Regulatory Authority (OGRA) on Tuesday workedout an increase of Rs6.94 per litre in the prices of HSD and Rs3.56 perlitre in motor gasoline (petrol) for March. The regulator also recommendedRs6.28 and Re1 per litre increase in the prices of kerosene and LDOrespectively.
Interestingly, next month’s prices have been worked out on the basis ofhigher-than-notified tax rates on the orders of the Ministry of Finance toenable the government to announce a relatively lower rate for politicalobjectives.
In an order, the finance ministry has ordered calculation of prices on thebasis of 31 per cent GST on high-speed diesel (HSD) and 17pc on all theother products. This is despite the fact that notified-GST rate on HSD atpresent is 25.5pc, 7.5pc on kerosene and light diesel oil (LDO) and 17pc onpetrol.
In addition, the government is also charging Rs8 per litre petroleum levyon HSD, Rs10 per litre on petrol and Rs6 and Rs3 per litre on kerosene andLDO, respectively.