As per the latest news update, the Oil and Gas Regulatory Authority (OGRA) has proposed a price reduction of Rs. 5.5 per liter in the prices of the petroleum products to Prime Minister Imran Khan, following a substantial decline in the oil rates internationally. The decision to reduce the prices of petroleum products awaits the PM’s approval, as per news reports.
The summary of petroleum price-reduction shared with the Ministry of Finance reportedly suggests that, as per the current tax rate, the price of petrol should be reduced by Rs. 1.40 per liter, and that of high-speed diesel by Rs. 5.50 per liter.
One of the key sources told the media that the summary for petroleum products price cuts prepared by OGRA has been shared with the Ministry of Finance and that the said ministry and the PM shall finalize the decision of reducing the prices of the petroleum products.
The source reportedly reckons that the Ministry of Finance would recommend earning some additional revenue through a larger petroleum levy by keeping the prices as they are.
The report highlighted, however, that the prices of petroleum products have not been reduced for the past four months. The government has maintained the prices of petroleum products for the past six weeks by reducing the petroleum levy rates following the hike in oil rates on an international scale.
However, the government resorted to the aforementioned strategy after increasing the levy on a consecutive basis for over two months. Those levy-rate hikes came before the aforementioned 6-week period. This has helped government collect almost 30 percent more than the targeted revenue on petroleum products during the initial six months of the 2020-21 fiscal year.