The Oil and Gas Regulatory Authority (Ogra) has recommended the federal government to increase prices of all petroleum products up to 15 percent for the month of May. In the wake of increasing prices of crude oil globally, the oil and gas regulator has calculated an increase of Rs 14.37 per litre for motor spirit (MS), Rs 4.39 per litre for high speed diesel (HSD), Rs 7.45 per litre for kerosene oil and Rs 6.40 per litre in the price of light diesel oil (LDO).
A summary has been moved to the Ministry of Finance for monthly review of existing prices of petroleum products for the month of May. Sources said that the government is likely to bring down general sales tax on diesel from 17 percent and make adjustments in petroleum levy on other products to prevent a surge in prices ahead of the holy month of Ramazan. The Ogra has proposed the government to charge PL on MS @ Rs 10 per litre and Rs 8 on HSD. It also proposed PL at Rs 6 per litre on kerosene oil and Rs 3 per litre on LDO.
If the government approved the recommended prices of petroleum products, the rate of MS would reach from Rs 98.89 per litre to Rs 113.26 per liter (15 percent increase), the price of HSD would go up from Rs 117.43 per litre to Rs 121.82 per liter (3.7 percent increase), the light diesel oil would go up from Rs 80.54 to Rs 86.94 per liter (7.8 percent increase) and with the addition of Rs 7.45 per litre in the previous rate of kerosene oil, its price would be Rs 96.76 per litre. The Ogra has calculated ex-refinery sale prices of petroleum products at standard 17 percent general sale tax (GST) and petroleum levy on MS and HSD.