Petrol price likely to go up by Rs 1.73 per litre
The government is expected to increase the price of petrol by Rs 1.73 per litre and CNG by Rs 1.55 per kg, while the Oil and Gas Regulatory Authority (Ogra) has suggested the government to keep petrol price at current level. According to sources in the Oil and Gas Regulatory Authority, from September 24 (Monday) petrol price is expected to increase by Rs 1.73 per litre and if the government enhanced petrol price CNG price will automatically increase because of the parity formula between petrol and CNG prices.
Copyright Business Recorder, 2012
The regulatory authority has also recommended to the government to reduce prices of other petroleum products by up to Rs 6.06 per litre, keeping the current international trend of crude oil prices in view, which from the last couple of days has witnessed a slight decrease.
It has further suggested the government to reduce price of High Octane Blending Component (HOBC), High Speed Diesel by Re 0.47 per litre, Light Diesel Oil by Rs 2.10 per litre and kerosene oil by Rs 3.05 per litre. The government is collecting petroleum levy on petrol products at the rate of Rs 8.86 per litre, Rs 11.84 per litre on HOBC, Rs 4.2 per litre on HSD and Rs 5.15 per litre on kerosene oil.
According to Petroleum Ministry official as a result of POL price increase, the government's tax collection on petroleum products also increase while general sales tax is being collected from the end consumers. The government on September 17 raised the petrol price by Rs 6.82 per litre and CNG price by Rs 6.24 per kg. The Authority has argued that if the government did not increase petrol and CNG prices it will help general masses.
Owing to increase in the petrol and CNG prices, the operators of Public Service Vehicles have increased the transport fares by up to Rs 3 stop-to-stop. Currently, different POL products are available on following rates: HOBC at Rs 137.96 per litre, petrol at Rs 106.72 per litre, High Speed Diesel at Rs 113.77 per litre, Light Speed Diesel at Rs 99.27 per litter and kerosene oil at Rs 104.68 per litter.