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.
Read More: Govt Increases Prices for Petrol and Diesel
If OGRA’s recommendations are given a green signal, following shift of prices will be seen (per liter).
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:
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.