ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday recommended the government for a substantial increase in ex-depot prices of the petroleum products for first half of March (March 1-15), in line with the crude oil increase, globally.

Sources said that the oil and gas regulator recommended 18.5 percent increase in ex-depot prices of petrol, and 16.9 percent increase in high-speed diesel (HSD).

Sources maintained that the Ogra recommended Rs20.7 increase in per litre petrol and Rs19.61 for per litre HSD.

Under a government instruction, the Ogra is required to calculate oil prices on the basis of 17 percent general sales tax and maximum petroleum levy (PL) permissible under the law at Rs30 per litre on the HSD and petrol.

The recommendation was further based at last 11 days purchase crude and exchange rate at $160 per barrel applied.

If the government accepts the recommendations of the OGRA, the price of petrol would go up from Rs111.90 per litre to Rs132.6 per litre.

The price of HSD also would increase from Rs116.08 to Rs135.69 per litre.

The prices of crude oil globally have gone up by $3.63 per barrel from $63.25 per barrel on February 16 to $66.88 per barrel on February 16, 2021.

At present, the PL on per litre petrol is Rs17.97 and Rs18.36 levy on per litre HSD.

The prices will likely to be increased with effect from March 1st as the final decision would be made by Prime Minister Imran Khan by adjusting PL and ex-refinery prices of petroleum products.

The government has already achieved 60 percent of budgeted Rs450 billion in the current financial year from the PL by keeping the rate at the highest level.

Copyright Business Recorder, 2021