ISLAMABAD, April 30: The Oil and Gas Regulatory Authority on Sunday increased ex-depot petroleum prices by up to 7.2 per cent with immediate effect for 29 designated depots following its approval by the prime minister.
Kerosene oil saw the highest increase of 7.2 per cent or Rs2.11 per litre in its ex-depot rate, followed by light diesel oil whose prices surged by 5.1 per cent or Rs1.6 per litre.
The ex-depot price of motor spirit, commonly known as petrol, went up by 2.5 per cent or Rs1.41 per litre. Similarly, High Octane Blending Component (HOBC) rates have been raised by 3.36 per cent or Rs2.11 per litre.
As such, kerosene oil will now be available at Rs35.23 per litre, instead of Rs32.87 per litre. The LDO will be sold at Rs32.57 per litre from now on, instead of Rs30.97.
The ex-depot sale price of motor spirit has been fixed at Rs57.70 per litre against old rates of Rs56.29. The ex-depot per litre price of HOBC was raised to Rs64.88 from the existing rate of Rs62.77.
The new rate sheet was placed on Ogra’s website following a gazette notification issued by the director-general of the petroleum ministry that fixed the petroleum development levy (PDL) at Rs12.72 and Rs16.09 per litre for motor spirit and HOBC. While the PDL on motor spirit and HOBC was reduced by 8.2 per cent and 9.6 per cent respectively, the inland freight equalisation margin (IFEM) was increased by 38 per cent on petrol, 70 per cent on HOBC, 50 per cent on kerosene and 25 per cent on LDO. However, there will be no PDL, excise duty and dealers’ commission on kerosene and LDO.
Pakistan State Oil (PSO) has increased the price of High Speed Diesel (HSD) by Rs 1.55 per litre. Now its HSD will be selling at Rs 38.73 per litre against its old price of Rs 37.18.
The IFEM is charged from consumers as transportation cost to maintain uniform rates at 29 depots across the country but nobody, including Ogra’s member, oil, was ready to explain how such an increase took place in transportation cost.
A separate press release by the government claimed the government had absorbed a burden of Rs2 billion and passed on an equivalent burden to consumers, saying it had so far suffered a revenue loss of Rs66 billion since May 2004. The government also claimed that it was providing a subsidy of Rs8.94 per litre on kerosene, Rs8.06 per litre on light diesel and Rs4.43 per litre on diesel.
But this only meant that it was not charging PDL on these products, otherwise the IFEM was increased substantially on all products. Similarly, it also charges 15 per cent GST on all products.
