Ogra proposes up to Rs10.5 per litre hike in petroleum prices

Published September 15, 2021
Petroleum Division sources said the working paper on the prices of petroleum products from Ogra had been received. — AFP/File
Petroleum Division sources said the working paper on the prices of petroleum products from Ogra had been received. — AFP/File

ISLAMABAD: The government will revise prices of petroleum products on Wednesday (today).

The prices may be increased by up to Rs10.5 per litre for the next fortnight if the calculations of the Oil & Gas Regulatory Authority (Ogra) are accepted by the government. However, a senior official told Dawn that the government might pass on a partial impact of increase in imported price and rupee depreciation to avoid inflationary pressure.

A final decision would be announced by the ministry of finance after consultations with the prime minister.

Petroleum Division sources said the working paper on the prices of petroleum products from Ogra had been received. The working paper is based on existing petroleum levy and general sales tax rates and import parity price.

According to the working paper, the regulator has calculated Re1 per litre increase in the ex-depot price of petrol and about Rs10.5 per litre hike in the ex-depot price of high speed diesel (HSD).

Likewise, the ex-depot price of light diesel and kerosene has been calculated to go up by Rs5.50 per litre each. These increases have been worked out because of slightly higher international oil prices and chiefly because of deteriorated exchange rate over the past 15 days.

Petrol and HSD are the two products that generate most of the revenue for the government because of their massive and yet growing consumption in the country. Average petrol sales are touching 750,000 tonnes per month against the monthly consumption of around 800,000 tonnes of HSD. The sales of kerosene and light diesel oil are generally less than 11,000 and 2,000 tonnes per month, respectively.

Under the revised mechanism, oil prices are revised by the government fortnightly to pass on international prices published in Platt’s Oilgram instead of previous mechanism of monthly calculations on the basis of import cost of Pakistan State Oil.

Published in Dawn, September 15th, 2021

Opinion

The rich boys
Updated 22 Sep 2021

The rich boys

Such is the toxic masculinity of these rich boys that no one is safe from it.
Going nuclear
22 Sep 2021

Going nuclear

Australia may regret its ‘forever partnership’ with the US.
Politics’ winged chariot
Updated 21 Sep 2021

Politics’ winged chariot

When others are shifting gears to election preparations, the PML-N is caught in its internal woes.

Editorial

22 Sep 2021

Interest rate hike

THE State Bank’s decision to raise its key interest rate by 25bps to 7.25pc underpins its acceptance of emerging...
PCB chief’s challenge
Updated 22 Sep 2021

PCB chief’s challenge

The Taliban takeover of Afghanistan has propelled fears of regional insecurity.
22 Sep 2021

No need for secrecy

THE government should not make a mountain out of the Toshakhana molehill. That would only encourage speculation of...
What’s the game?
21 Sep 2021

What’s the game?

Such brinkmanship is being fuelled by incendiary rhetoric as well as inflexible demands of a unilateral nature.
21 Sep 2021

Gas price hike

THE proposed hike of 24pc-37pc in the gas price of the top 23pc residential consumers, who account for 43pc of the...
21 Sep 2021

Green Line buses

AT long last, the first batch of vehicles for Karachi’s Green Line bus project arrived from China on Sunday,...