ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Thursday recommended an increase of approximately Rs 6 per litre in the ex-depot prices of petroleum products for the first half of May 2021.

Source said that at bases of standard rate of 17 percent general sale tax (GST) and last notified rate of petroleum levy (PL), OGRA has computed increase in the price of petrol and high speed diesel (HSD) by Rs 6 per litre.

Sources said that owing to surge in prices at international level since April 16, the price of petroleum products also recommended to an increase upto 5 percent.

In case federal government accepted the recommendations of OGRA, the price of petrol would increase from Rs 108.56 per litre to Rs 114 per litre. The price of HSD would also increase from Rs 110.76 per litre to Rs 116 per litre in case government agreed with the recommendations of OGRA.

A summary has also been sent to Finance Division which will announce the new prices by adjusting taxes and ex-refinery/cost of supply Pakistan State Oil (PSO). The Brent prices globally remained above $65 per barrel in last 15 days. Pakistan imported 80 percent of petrol to meet local consumption. However, due to lock down in various localities, ban at in-provincial transport and Eid holidays, the consumption of petroleum products would come down in the first half of May, 2021, an official of petroleum division said.

The regulator already directed oil marketing companies to maintain its HSD stock as per requirement to fulfill the need during current harvesting season.

Copyright Business Recorder, 2021