The apex regulatory authority has recommended an increase in petrol prices for the month of December. Oil and Gas Regulatory Authority (OGRA) proposed an increase of Rs 1.48 per liter in petrol price while Rs 1.20 in High-speed diesel (HSD).
OGRA suggested the following increments in prices of petroleum products.
- Rs 1.48 per liter in petrol price
- Rs 1.20 per liter in HSD price
- Rs 15.35 in Super Kerosene Oil (SKO)
- Rs 13.15 in Light Diesel Oil (LDO)
- HSD consumption: Over 800,000 tons per month
- Petrol consumption: Over 700,000 tons per month
- LDO and Kerosene oil consumption: 10,000 tons per month
Read More: Govt Increases Prices for Petrol and Diesel
Current Prices and Percent Change
If OGRA’s recommendations are given a green signal, following shift of prices will be seen (per liter).
- Petrol: From Rs 75.99 to Rs 77.49 after a 1.9% increase.
- HSD: From Rs 50.07 to Rs 51.27 after a 2.4% increase. (refinery price)
- HSD: From Rs 84.59 to Rs 86.50 after a 2.4% increase. (depot price)
- SKO: From Rs 53.19 to Rs 68.54 after an increase of 28.9%
- LDO: From Rs 49 to Rs 62.15 after a 26.9% increase.
The regulatory authority recommended such huge increase in kerosene prices to control the quality of petrol. Due to the huge difference of prices, market operators mix kerosene oil with petrol to increase their profits and decrease quality of petrol. While the remaining petroleum products are sold at fixed rates all over country, kerosene oil rates vary region to region.
Government amasses huge revenue by charging taxes on petroleum products as their consumption is increasing massively. Government charges the following taxes:
- General Sales Tax (GST) on HSD: 31%
- GST on rest of petroleum products: 17%
National treasury collects Rs 8/liter on HSD, Rs 6 on kerosene oil, Rs 3 on LDO and Rs 10 on petrol.
OGRA reviews prices on the last day of every month. Recommendations have been sent to Finance Ministry. After that they were sent to Prime Minister’s office, who will give the final approval.