ISLAMABAD –The Oil and Gas Regulatory Authority (OGRA) has worked out a reduction in ex-depot prices of petroleum products for the second half of April owning to downward trend in global oil prices in current months.
Sources said that OGRA has recommended a reduction in price of petrol by Rs0.49 per liter and Rs1.55 per liter in rate of high diesel oil (HSD) with effect from April 15 to April 30.
These two pol products are the major revenue to generate general sale tax and petroleum levy (PL).
The oil and gas regulator computed the new rates based at 17 percent GST and PL rates notified on the POL for first half of April.
Sources said that the government may not reduce the ex-depot prices of petrol and HSD as it did not pass on full impact of increased global oil prices in recent months.
The government may increase the rate of PL which reduced to Rs11.23 per litre on petrol and PL on HSD to Rs15.29 per litre after charging Rs30 per litre for many months.
Currently, the government is also charging levy on kerosene and LDO at the rate of Rs1.74 and Rs1.38 per litre, respectively. There was no levy on these two products before.
If recommendations of the OGRA accepts, new ex-depot rate of HSD would be fixed at Rs111.53 per litre instead of Rs113.08 per litre at present. Likewise, the ex-depot petrol price would be set at Rs109.86 instead of current price of Rs110.35 per liter.
Copyright Business Recorder, 2021
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