ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) recommended on Friday a reduction in petrol and kerosene prices and an increase in that of high speed diesel (HSD) for December, but said the cost of all petroleum products could be reduced by bringing down the tax rates.

The prices in the international market of petrol, kerosene and light diesel dropped during the current month, while HSD and high octane blending component posted minor increases.

Based on the existing tax rates and the Pakistan State Oil’s purchases from international market, Ogra has worked out a reduction of Rs1.05 per litre in the ex-depot price of petrol to Rs75.21 and of 79 paisa in the price of kerosene to Rs56.32.

The government is charging 22pc general sales tax and around Rs10 per litre petroleum levy on petrol and kerosene. The recommended price of light diesel is Rs53.23, down 36 paisa from Rs53.59. The GST on LDO is 24pc.

Ogra also recommended 1.9pc cut in the prices of aviation fuels like JP-1 and JP-8.

The regulator recommended the price of HSD to go up by 1.7pc to Rs85.21.

The government is collecting 47.5pc GST on HSD and Rs8 per litre petroleum levy. It calculated the price of HOBC at Rs80.66, an increase of 87 paisa. The government charges 16.5pc GST and Rs11.88 per litre levy on the fuel.

Published in Dawn, November 28th, 2015