On Wednesday, the Oil and Gas Regulatory Authority (OGRA), recommended an increase of 70 paisa per litre for high-speed diesel (HSD) and Rs2.24 per litre for petrol from Sept 1.
The Increased Rates
OGRA submitted a report to the Ministry of Energy, recommending an increase in prices of petroleum products for September. Decision on the recommendation, however shall be taken on Thursday.
OGRA’s Recommended Rates:
- an increase of Rs2.24 per litre in the price of petrol (motor spirit)
- an increase of Rs0.70 for HSD
- an increase of Rs15 for kerosene oil (superior)
- an increase Rs12 for light diesel oil.
If the prices are revised upwards, the price shall be as follows:
- Petrol will cost Rs71.80 per litre compared to the current Rs69.56
- HSD will cost Rs78.10 per litre compared to the current Rs77.40.
- superior kerosene oil will cost Rs59 per litre compared to the current Rs44
- Diesel will cost Rs56 per litre instead of Rs44.
Rates Likely To Remain Unchanged Until Eid
According to an official, the government is likely to not impose the new rates until after Eid to facilitate the people. He also added that the authority won’t let the transporters take undue advantage of the increased prices.
Cause of Increased Rates
In a summary submitted to the government by Ogra, it explained the price hike was a reaction to the increased international rates implied during August.
According to an Ogra official, the new prices were calculated based on the imports made by PSO in August. The price comprised of a general sales tax (GST) and petroleum levy rates on all products.
The petroleum industry and the Ogra officials explained that an increase in the kerosene and LDO prices will reduce its Rs30 per litre price differential with petrol.
This in turn would restrict dishonest market operators from indulging into activities such as mixing kerosene with petrol to gain unlawful profits.
The summary has been sent to the petroleum ministry as it is done at the end of every month. The summary will then be forwarded to the finance ministry and the premier’s office for the final decision.