Ogra proposes new petrol, diesel prices

Published September 30, 2015
Ogra worked out a reduction of 15 paisa per litre in the ex-depot price of petrol to Rs73.61 from Rs73.76. —Reuters/File
Ogra worked out a reduction of 15 paisa per litre in the ex-depot price of petrol to Rs73.61 from Rs73.76. —Reuters/File

ISLAMABAD: Based on existing tax rates, the Oil and Gas Regulatory Authority (Ogra) calculated on Tuesday a reduction in prices of petrol and high-speed diesel (HSD) and an increase in other major petroleum products for the month of October.

It said the prices of all products could come down significantly if tax rates were reverted to normal budgeted position because their prices in the international market had declined in September.

Based on the existing tax rates and PSO purchases from the international market, Ogra worked out a reduction of 15 paisa per litre in the ex-depot price of petrol to Rs73.61 from Rs73.76.

The government is currently charging Rs24.92 per litre as taxes — Rs15 as GST and Rs9.92 as petroleum levy.

Ogra said petrol price could come down by Rs6 per litre if calculated on the basis of a fall in the international market.

The regulator calculated the price of high-speed diesel at Rs79.39 per litre, a reduction of Rs2.65, from Rs82.04 if the current tax rates were kept unchanged.

The government is collecting Rs33.30 per litre taxes on HSD — Rs25.46 as GST and Rs7.84 as petroleum levy.

Ogra said HSD price could come down by Rs16 per litre based on the international price fall in September.

It said the prices of three other products — kerosene, high octane blending component (HOBC) and light diesel oil (LDO) — could come down by Rs7 to Rs10 per litre on the basis of their decline in the international market.

The prices of these products were, however, proposed to be increased on the basis of existing tax rates.

As a consequence, the ex-depot price of kerosene was calculated at Rs60.10 per litre, an increase of Rs2.99, from Rs57.11.

The government is charging Rs13.18 per litre as GST and Rs5.92 as petroleum levy on kerosene.

Ogra worked out an increase of Rs2.63 per litre in the price of HOBC to Rs82.42 from Rs79.79.

The government is collecting Rs15.44 per litre as GST and Rs13.89 as petroleum levy on it.

The regulator calculated LDO price at Rs56.10 per litre, up by Rs2.51, from Rs53.59.

A senior official said the government had passed on partial relief to consumers last month by increasing tax rates and the same strategy would be followed this time as well.

He said the finance ministry would like to keep the prices of all products unchanged to have price stability and earn higher revenue yield through higher tax recovery on high price diesel.

Petrol and high-speed diesel are two major products that generate most of the revenue from the oil sector.

The monthly sale of HSD across the country stands at over 600,000 tonnes, petrol at about 400,000 tonnes and HOBC and kerosene at less than 10,000 tonnes.

A final decision on how much relief to be passed on to consumers would be taken by the prime minister on the advice of the finance ministry and the Federal Board of Revenue, the official said.

Published in Dawn September 30th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Opinion

Hoping for miracles
Updated 26 Sep 2021

Hoping for miracles

Pakistan will be exposed to international recrimination if the Taliban revert to their old ways.

Editorial

Updated 26 Sep 2021

Intransigent Taliban

PRIME MINISTER Imran Khan has delivered an effective speech at the UN General Assembly session detailing the salient...
26 Sep 2021

Deadly misinformation

THE distinction between ‘fake’ and ‘authentic’ news is now a concept impossible to escape. In an...
26 Sep 2021

Covid arrests

THE unilateral decision taken by Karachi’s East Zone police to arrest citizens without Covid vaccination cards ...
25 Sep 2021

NAB controversy

THE completion of the four-year term of NAB chairman Javed Iqbal early next month has afforded Prime Minister Imran...
Cabinet ‘inclusivity’
Updated 25 Sep 2021

Cabinet ‘inclusivity’

Voices are being raised questioning when the much-hyped inclusivity the group had talked about will materialise.
25 Sep 2021

Quorum malady

LACK of quorum has become a chronic problem for the present National Assembly which is in the process of becoming a...