The Oil and Gas Regulatory Authority (OGRA) in its summary has suggested a 3.56 per litre raise in the petrol prices. Petrol is the fuel that is mostly consumed by the motorists.
Consumers would most probably be facing a rise in the price of high-speed diesel, besides petrol price by 7.2 percent, which is extensively used in the agriculture sector and transportation automobiles, from the start of March after the increase in the international ISLASScrude markets.
If revised, by the government, then the price of high-speed diesel would be increased to rupees one hundred and two per litre.
The two most extensively consumed petroleum products in Pakistan are petrol and diesel.
The Ministry of Energy (Petroleum Division) got the summary submitted by OGRA on Tuesday. The overall, regulatory recommendation is up to 8.9 percent increase in the prices of the petroleum products as the prices of crude oil have increased in the foreign markets.
As per the proposition of OGRA—an increase of rupees 3.56 per litre (that makes 4.2 percent) in the price of petrol, an increase of rupees 6.94 per litre (which makes 7.2 percent) in the price of high-speed diesel, rupees 1 per litre (which makes 1.6 percent) rise in the prices of light diesel and rupees 6.28 per litre (which makes 8.9 percent) rise in the price of superior kerosene oil, is suggested.
OGRA's Proposed Petroleum Product Prices
|Petroleum Product||Increase in Price per Litre||Percentage Increase||Current Price/Litre (Rupees)|
|High-speed Diesel||6.94/Litre||7.2%||Rs 95.83|
|Light Diesel||1/Litre||1.6%||Rs 64.30
|Superior Kerosene Oil||6.28/Litre||8.9%||Rs 70.18|
If government permits, then the petrol prices would go up to rupees 88.07 per litre from the current rupees 84.51, the price of light diesel oil would hike to rupees 65.30 per litre from rupees 64.30, the prices of superior kerosene oil would increase to rupees 76.46 per litre from rupees 70.18 and the price increase for high-speed diesel would be from rupees 95.83 to rupees 102.77 per litre.
Updated Prices for the Month Of March (if OGRA's Proposal Gets Accepted by Govt.)
|Petroleum Products||Expected Prices Per Litre (Rupees)|
|High-Speed Diesel||Rs 102.77|
|Light Diesel||Rs 65.30|
|Superior Kerosene Oil||Rs 76.46|
Consumers are already paying a high sales tax at thirty-one percent on the purchase of diesel in comparison to the standard seventeen percent tax.
The government has heavily loaded the consumers with an increased general sales tax over the span of the last couple of years in line with the surge in the prices of crude oil globally.
OGRA has suggested a seventeen percent sales tax on petroleum products for producing revenues and for maintaining a stability in terms of prices.
As per the recommendation, the Federal Board of Revenue (FBR) would be charging seventeen percent sales tax on petrol, superior kerosene oil and light diesel oil.
Additionally, the government is also gathering rupees ten per litre of petroleum charge, rupees three per litre of light diesel oil and rupees six per litre on kerosene oil.
The Energy Ministry would be forwarding the OGRA’ summary to the Ministry of Finance and to the office of Prime Minister for taking the verdict.
Price hikes never go too well with the public consumers. The Lahore, Faisalabad and Islamabad Chamber of Commerce has claimed that this price hike would be bad both for the economy and would create a lot of unneeded burden on the public.