Oil and Gas Regulatory Authority (OGRA) Pakistan has forwarded a summary to the ministry of petroleum and Natural Resources and Ministry of Finance which proposes an increase in oil prices for the month of September, according to the summary OGRA proposed Rs. 2.24 per litre increase in Petrol price and 70 paisa increase in High-Speed Diesel.
Apart from Petrol and High-Speed Diesel OGRA also recommends the increase in kerosene oil by Rs. 15 per litre and Rs. 12 per litre on Light Diesel Oil.
The government will announce its decision on the prices by Thursday.
If the government accepts the proposal sent by OGRA the new petrol prices would go up from current Rs. 69.56 per litre to Rs. 71.80 per litre and diesel from Rs. 77.40 per litre to Rs. 78.10 per litre.
Similarly, the prices for kerosene oil will jump from Rs. 44 per litre to Rs. 59 per litre and the prices of Light Diesel Oil from Rs. 44 to Rs. 56 per litre.
During the last four months May, June, July and August OGRA proposed price cuts on all petroleum products due to the falling oil prices internationally but the government only decreased prices partially.
Secondly, GST on Petrol and High-Speed diesel was increased from 15.5 percent to 20.5 percent during May and June respectively, which was further increase to 29.5 percent in July and 35.5 percent in August, current GST on High-speed diesel is 35.5 percent and 20.5 percent on motor spirit (Petrol).
Previously it was expected that government would keep the prices unchanged for the month of September, but after the OGRA’s summary, the prices might see a surge in September.