ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) recommended on Friday an increase in prices of petrol and diesel from Aug 1.

According to sources, Ogra has sent a summary to the finance ministry and a decision on price revision would be taken on Monday after approval by the prime minister.

PM rejects Ogra’s summary to increase POL prices

They said Ogra had recommended a reduction in prices of kerosene and light diesel oil and proposed that a revision in prices of all petroleum products should be made immediately in view of the week-long Eid holidays.

According to the working paper submitted to the government, Ogra has proposed a price increase of Rs1.45 per litre for petrol, Rs4.10 for high octane blending component and 35 paisa for high speed diesel. It has recommended a reduction of Rs1.10 per litre in the price of kerosene and Rs1 in that of light diesel oil.

The government charges Rs6 to Rs14 per litre petroleum levy and 16 per cent general sales tax on all products.

The sources said the government was expected to keep the price of high speed diesel unchanged by absorbing an impact of 35 paisa per litre in petroleum levy with a total revenue impact of about Rs1.1 billion.

Published in Dawn, July 26th, 2014