ISLAMABAD: The prices of petroleum products may come down by up to Rs5.5 per litre on Wednesday provided the prime minister accepts recommendation of the Oil & Gas Regulatory Authority (Ogra) based on fall in international market.

A senior government official told Dawn that Ogra’s summary on price cut had reached the Ministry of Finance that would be taking up the matter with the prime minister for a decision on Wednesday. The sources said the Ministry of Finance would oppose reduction in oil prices and would like to mop up some additional revenues through higher petroleum levy by keeping the prices unchanged.

Based on existing tax rates, Ogra has calculated the price of petrol to come down by about Rs1.40 per litre and that of high-speed diesel by Rs5.50 per litre.

The prices of petroleum products have not gone down for about four months now. The government kept the prices unchanged for three fortnights by reducing petroleum levy rates after increasing them for five consecutive fortnights.

At present, the ex-depot price of High Speed Diesel (HSD) and petrol stands at Rs116.08 per litre and Rs111.90 per litre, respectively. The ex-depot price of kerosene now stands at Rs83.61 per litre and that of LDO at Rs81.42 per litre.

To maintain the prices at existing level, the government had to cut petroleum levy on petrol and diesel for three fortnights. At present, the levy on petrol and diesel stands at Rs11.23 and Rs12.74 per litre, respectively. There is no levy on kerosene and LDO at present.

An official said the government had already collected almost 30pc higher than targeted revenue on petroleum products through petroleum levy in first six months of the current fiscal year.

Published in Dawn, March 31st, 2021