Capped prices of petroleum products: Govt to bear additional burden of Rs33bn

ISLAMABAD: Federal government decision to un-change the prices of petroleum products for first half of April will raise the price differential claims (PDC) to Oil Marketing Companies (OMCs) and oil Refineries.

In a statement, Finance Division says that government will bear the additional burden of Rs 33 billion to keep the prices unchanged. For month of March, the PDC amount was Rs 31 billion. According to notification of Oil and Gas Regulatory Authority (OGRA) the PDC on petrol is Rs 24.07 per litre. Ex-refinery price of petrol has been increased from Rs 160.56 to Rs 161.91 per litre. According to refineries, the price should be decreased by Rs 3.79 per litre after PDC, due to decline in the rate of petrol globally.

Currently, government is not charging petroleum levy (PL) and General Sale Tax (GST) on petrol.

The price of high speed diesel (HSD) has also been maintained for first half of April at Rs 144.15 per litre. Refinery sources said that the ex-refinery price of HSD was increased by Rs 3.01 per litre after including PDC.

At present, OGRA is engaged with leading OMCs and OCAC representatives to resolve all the issues including current scenario relating to PDC, IFEM matters and Industry reservations on certain matters.

Copyright Business Recorder, 2022