ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra), on Monday, recommended 3.8 percent increase in the price of petrol and 3.1 percent in the price of high speed diesel (HSD) for second half of the current month.
In fortnightly review of petroleum products’ prices, the Ogra worked out on the basis of 17 percent general sales tax (GST) and current rate of Petroleum Levy (PL) on petrol and the HSD.
Currently, the federal government is charging Rs 4.80 per litre PL on petrol and Rs 8.44 per litre PL on HSD.
A summary has been sent to the Petroleum Division, and the Finance Division will announce the new rates of the petroleum products with effect from June 16 after adjusting its revenue from taxes.
The regulator recommended an increase of Rs 4.20 per litre in the price of petrol and Rs 3.50 per litre in price of the HSD. In case, the government approved the recommendations of the Ogra, the rate of petrol will go up from Rs 108.56 per litre to Rs 112.76 per litre and HSD from Rs 110.76 per litre to Rs 114.26 per litre. The government has budget a target of Rs 500 billion from PL in the current financial year. During first three quarters of current financial year, the collection of PL was Rs 369 billion.
The government required Rs 131 billion to achieve the target till June 30.
The oil price for Brent crude oils in June was $70.99 per barrel, while the price was $68.53 per barrel in May 2021. Over the last 12 months, the price has risen 76.29 percent.
Copyright Business Recorder, 2021