ISLAMABAD: The prices of key petroleum products — petrol and high-speed diesel (HSD) — are estimated to go up by Rs9-11 per litre on Jan 31 for the first fortnight of February if straight calculations of Oil & Gas Regulatory Authority (Ogra) are accepted by the prime minister.

However, based purely on international prices published in Platt’s Oilgram, the prices of petrol and HSD would need an increase of Rs2.30 and Rs2.11 per litre, respectively. A Petroleum Division official said that based on import shipments as of Jan 27, the petrol price was higher by Rs2.30 and HSD by Rs2.11 per litre.

Under the government instructions, Ogra is required to calculate oil prices on the basis of 17pc general sales tax and maximum petrol levy permissible under the law at Rs30 per litre on HSD and petrol. The government later announces a lower than Ogra-determined prices on political considerations and also leaks Ogra’s summary to select media.

Therefore, Ogra had worked out an increase of about Rs9.02 and Rs10.74 per litre on HSD and petrol, respectively. This is because the petroleum levy currently stands at Rs21.56 per litre on petrol and Rs23.09 per litre on HSD.

On Jan 15, the government had increased the prices of HSD and petrol by Rs2.95 per litre and Rs3.20 per litre against Ogra’s calculation of Rs11 and Rs13 per litre respectively.

Published in Dawn, January 30th, 2021