ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Sunday recommended the federal government an increase in petroleum products for first half of June owing to an increase in oil prices globally.
The oil and gas regulator recommended up to 4 percent increase in the ex-depot prices of petroleum products based on the last notified rate of general sale tax (GST) and Petroleum levy (PL).
The regulator has worked out an increase of Rs 4.36 per litre in the ex-depot price of high speed diesel (HSD). It has further suggested an increase of 50 paisa per litre in the prices of kerosene oil (SKO) and light diesel oil (LDO), however, recommended to sustain the price of petrol at current level with effect from June 1.
The government decided to maintain the prices of petroleum products in May by reducing the rate of PL at Rs 4.74 on petrol and Rs 12.16 per litre on HSD. These two products are major sources of revenue in petroleum products. The government is not charging any PL on SKO and LDO and also as per the notification dated May 9, the GST rate of SKO was reduced from 17 percent to 15.44 percent and 17 percent to 7.56 percent on LDO.
In case federal government approves the recommendation of OGRA, the new price of petrol will be Rs 108.56 per litre.
Copyright Business Recorder, 2021
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