ISLAMABAD: Even though international prices have inched up, the Oil and Gas Regulatory Authority (Ogra) on Thursday recommended to the government to keep the prices of four major oil products unchanged and reduce petroleum levy to maintain the prices at the existing level.
Ogra in its pricing summary submitted to the petroleum ministry for the next fortnight stating on July 15 also recommended to the government to reduce the price of high speed diesel by Re1 per liter.
In view of the slightly higher prices in the international market, Ogra worked out an increase of Rs1.96 per liter in the price of motor spirit, Rs5.46 per liter increase in high octane blending component, Rs1.94 per liter increase in kerosene and Rs1.62 per liter hike in the price of light diesel oil.
But it recommended to the government to make a slight reduction in petroleum levy to maintain the prices of these products at the existing level.On the other hand, Ogra worked out a reduction of Re1 per liter in the price of high speed diesel and advised the government to pass on its benefit to the consumers.
A petroleum ministry official said the government would act on the ‘calculations’ of the oil and gas regulator instead of considering its ‘recommendations’.
He said it was Ogra’s job to work out prudent cost of fuels in a transparent manner and it was in the jurisdiction of the government to take a final decision keeping in view its overall political and economic policy objectives.
The official said parliament had authorised the government to charge certain amount of petroleum levy on all products and the government would remain within permissible limits on revenue collection. He said there was no reason at present to reduce petroleum levy.
The government is currently charging Rs10 per liter petroleum levy on petrol, Rs14 per litre on HOBC, Rs6 per liter on kerosene and Rs8 per liter on HSD. In addition, it collects 16 per cent general sales tax on all products that fluctuates between Rs14-17 on various products according to change in prices.