ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) recommended on Thursday up to 15 per cent increase in prices of petroleum products and 7.3pc cut in high speed diesel (HSD) for March.

According to a working paper submitted to the government, Ogra recommended Rs5.59 per litre (7.95pc) increase in the ex-depot price of petrol from Rs70.29 to Rs75.88. But it proposed a reduction of Rs5.49 per litre (7.30pc) in HSD price from Rs80.61 to Rs75.12.

Ogra sought to raise the price of High Octane Blending Component (HOBC) by Rs12.92 per litre (15.71pc) to Rs92.93 from Rs80.31; kerosene by Rs7.32 (11.91pc) to Rs68.76 from Rs61.44 and light diesel oil (LDO) by Rs5.50 (9.49pc) to Rs63.44 from Rs57.94.

Know more: Fuel prices cut, but sales tax increased

A senior Ogra official said the authority had worked out the price adjustment on the basis of 27pc GST, and not on the previous rate of 22 or 17pc, on the instructions of the finance minister. He said the government had the powers to increase or decrease the tax rate and depending on the political situation it might provide relief to people or increase its revenue collection. A finance ministry official said a final decision on the price adjustment would be taken after seeking an advice from the prime minister.

He said the ministry would like to protect its per litre GST collection which would mean a partial increase in the prices recommended by Ogra. For example, petrol price may be increased by about Rs2.50 per litre by making adjustments in tax rates, instead of Rs5.50 as proposed by the regulator.

Published in Dawn, February 27th, 2015

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