Govt increases petrol price by Rs5.15 per litre for August

Published August 1, 2019
The sources said that the government approved all the recommendations of the Oil and Gas Regulatory Authority (Ogra). — AFP/File
The sources said that the government approved all the recommendations of the Oil and Gas Regulatory Authority (Ogra). — AFP/File

The federal government on Wednesday increased the prices of all petroleum products for the month of August amid a slight reduction in the international crude price, sources told DawnNewsTV.

The sources said that the government approved all the recommendations of the Oil and Gas Regulatory Authority (Ogra) for the current month.

In the latest development, the government increased the price of petrol (motor spirit) by Rs5.15 per litre and Rs5.65 for High Speed Diesel (HSD). Similarly, the price of kerosene was increased by Rs5.38 and Rs8.9 for Light Diesel Oil (LDO).

Earlier on Tuesday, the regulatory authority had moved a summary to the government containing calculations on petroleum prices on the basis of higher general sales tax and petroleum levy.

According to an official, the crude price had dropped by more than 12 per cent in the Arabian Gulf to $63 per barrel on July 30 from $72 on April 28, but the government had been gradually increasing tax rates.

The government increased the ex-depot rate of HSD to Rs132.47 per litre, from Rs126.82, showing an increase of about 4.45pc.

Likewise, the government increased the ex-depot price of petrol to Rs117.83 per litre from Rs112.68 — up about 4.6pc.

Similarly, the ex-depot price of LDO was fixed at Rs97.52 per litre — up more than 10pc over the previous rate of Rs88.62. The kerosene price was fixed at Rs103.84 per litre, showing an increase of about 5.5pc over the previous rate of Rs98.46.

The government is charging 17pc general sales tax (GST) on all petroleum products. Besides the GST, the petroleum levy ranging between Rs14-18 per litre was being charged on petrol and HSD and Rs3-6 on kerosene and LDO.

Petrol and HSD are two major products that generate most of the revenue because of their massive and yet growing consumption in the country. Total HSD sales are touching 800,000 tonnes against monthly consumption of around 700,000 tonnes of petrol. The sales of kerosene and LDO are generally less than 10,000 tonnes per month.

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