Prices of petroleum products raised

ISLAMABAD: Federal government has raised the ex-depot prices of petroleum products up to 4.7 percent with effect from July 1.

Finance Division states that for first half of July, petrol price has been increased by Rs 2 per litre or 1.8 percent. The price of High Speed Diesel (HSD) is also increased by Rs 1.44 per litre or 1.2 percent. The rates of Kerosene Oil (SKO) are also raised by Rs 3.86 per litre or 4.7 percent and Light Diesel Oil (LDO) by Rs 3.72 per litre or 4.6 percent, respectively.

The new petrol price is Rs 112.69 per litre from Rs 110.69 per litre. The price of HSD is also increased by Rs 1.44 per litre. The rates of SKO is increased from Rs 81.89 per litre to Rs 85.75 per litre and LDO’s from Rs 79.68 per litre to Rs 83.40 per litre. Sources said that Oil & Gas Regulatory Authority (Ogra), in its summary to the Petroleum Division, had sought increases in prices of petrol by Rs6 and HSD by Rs 3 per litre.

Finance Division argued that Oil and Gas Regulatory Authority (OGRA) has been recommending a substantial increase in the prices of petroleum products since May 1, 2021, corresponding to the increase in prices of the petroleum products in the international markets. However, Finance Division states that keeping in view the welfare of general public, the government has absorbed the impact of the increase by making adjustments in sale tax and petroleum levy (PL).

Currently, the finance ministry says the petroleum levy rates are at the lowest of last six years.

“During the financial year 2020-21, the government has provided Rs 252.41 billion subsidy to consumers by keeping low the petroleum levy rates against the budgeted Rs 30 per litre on all products,” the ministry maintained.

Sources in the ministry said the federal government has also collected Rs 390 billion in first ten months (July-April 2021) against a revised estimates of Rs 500 billion under the PL head.

The government is also claiming that as compared to neighbours in the region, government is providing petrol and diesel at the lowest level rates. The PSO cost of supply/ex-depot sale price of petrol is increased from Rs81.12 per litre to Rs86.27 per litre. The rates of PL rate on petrol is reduced from Rs 2.97 per litre in June to zero for next 15 days. The volume of sale tax is also reduced from Rs16.08 per litre to Rs15.88 per litre.

Copyright Business Recorder, 2021