Prime Minister Imran Khan rejected on Monday the Oil and Gas Regulatory Authority's (OGRA) recommendation to increase the prices of petroleum products, according to a statement issued by the Prime Minister's Office (PMO).

In its summary, Ogra suggested that the existing price of petrol be increased by Rs5 to Rs150.82 per litre and that of high-speed diesel (HSD) also by Rs5 to Rs147.62 per litre from November 16.

Petroleum products: another price hike in the offing

"The prime minister has seen and, while not approving the proposal ... of the summary, is pleased to desire that [the] prices of petroleum products from November 16, 2021 shall remain the same as of current fortnight," the PMO's statement said.

A notification issued by the Finance Division said that the decision was taken in the public interest and the government will bear the burden by making adjustments in the sales tax rate.

On November 5, the federal government raised the prices of petroleum products by up to six per cent by making adjustments in petroleum levy (PL) and general sales tax (GST).

The PL rate was increased on petrol, and high-speed diesel (HSD), however, the government reduced GST until further order.

On the basis of tax rates, import parity price and exchange rate, the government increased the price of petrol and HSD by Rs8.03 and Rs8.14 per litre, respectively.

Prices of petroleum products increased again

The prices of kerosene oil (SKO) and light diesel oil (LDO) were increased by Rs6.27 and Rs5.72 per litre, respectively.

Petroleum levy on petrol was increased on petrol and the HSD at Rs4 per litre or 71 and 77 percent increase respectively.

The PL on petrol was increased from Rs5.62 per litre to Rs9.62 per litre.

The rate of PL on HSD was also increased from Rs5.14 per litre to Rs9.14 per litre.

The PL rate on SKO was kept at Rs.06 per litre, the same at the rate of the second half of October and zero rates on LDO.