However the PM has to take the decision in this regard. The Oil and Gas Regulatory Authority (Ogra) has proposed Rs 5-8 per litre cut in oil prices in line with the reduction in global oil prices. It proposed Rs 5 per litre cut in diesel price, and Rs 8 per litre in petrol price.
During the current fortnight, from December 16 to 31, world oil prices witnessed record decline to $33 per barrel. By keeping oil prices unchanged during the current fortnight, the government had targeted to earn around Rs 6 billion as petroleum development levy (PDL) and general sales tax and, by maintaining the current oil prices, the government can generate the same amount in the next fortnight, sources said.
With the decline of global oil prices to $33 barrel per barrel, consumers have been expecting more relief in the oil products prices. The earning through PDL and GST from the consumers on the petroleum products has become the main source of revenue generation for the government to help bridge the budget deficit. The government has earned over Rs 50 billion general sales tax and petroleum development levy on petroleum products during July-October of the current financial year.
It earned Rs 126 billion from consumers despite paying subsidy during the last financial year and is eyeing Rs 150 billion revenue from oil users during the current financial year. In addition to 16 percent general sales tax on petroleum products, the government is currently charging Rs 29.49 per litre petroleum development levy (PDL) on petrol, Rs 39.85 per litre on HOBC, Rs 12.48 per litre on kerosene oil and Rs 12.40 per litre on light diesel oil.