As previously reported that the petrol prices are likely to go up by Rs5 per liter in May is now becoming true as ongoing fluctuations in global oil market might affect the oil prices in Pakistan, the federal government is likely to increase the petrol prices by Rs3.20 and Diesel prices by Rs5.02 in the month of May—Tribune reported.
The Oil and Gas Regulatory Authority (OGRA) has proposed an increase of Rs3.22 in petrol prices which will take the current price from Rs86 to Rs89.22 per liter in May 2018. If the government implements the changes proposed by OGRA the price of High-speed diesel HSD would jump to Rs.101.47 per liter from the current price of Rs96.45 per liter.
In another report, the government is seeking parliament’s approval to increase the levy on all petroleum products in order to generate at least Rs130 billion in revenues. The government is currently charging petroleum levy on Rs8 per liter on HSD, Rs10 per liter on petrol Rs6 per liter on kerosene oil and Rs3 per liter on LDO.
Now the government is proposing to increase the levy to Rs30 per liter on all the petroleum products, OGRA has sent the summary to the ministry of petroleum in order to get PMs approval on the new proposed prices.
Petrol and HSD generate the most revenue for the country because of their massive consumption in the country; on one side the government is measuring the international fluctuations and the USD exchange rate on the other side. On top of that government is also seeking to increase the levy on the products.