PM nod awaited to cut petroleum prices

Published March 31, 2021
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. — Reuters/File
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. — Reuters/File

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

Opinion

Editorial

Stock market carnage
Updated 04 Dec 2021

Stock market carnage

PAKISTAN’S stock market has been on a downward ride for the last several months as a result of deteriorating...
04 Dec 2021

Omicron threat

THE NCOC has suggested installing more oxygen plants in various parts of the country as the new Covid-19 variant,...
04 Dec 2021

UK spymaster speaks

A RECENT speech by the chief of MI6 — the UK’s external intelligence agency — provided a key insight into the...
Crime against humanity
Updated 03 Dec 2021

Crime against humanity

The government has yet to fulfil its long-standing pledge to criminalise enforced disappearances.
03 Dec 2021

Revised valuations

THE revised property valuations notified by the FBR for 40 cities for the purpose of collecting federal taxes —...
03 Dec 2021

PWD await rights

ON the International Day of Disabled Persons, it is important to take stock of how far Pakistan has come in ensuring...