Following the intervention of Prime Minister Nawaz Sharif, the Oil and Gas Regulatory Authority (Ogra) on Saturday notified no change in petroleum prices, which were expected to increase marginally from December 1, 2013, following a summary moved by Ogra to this effect. According to a notification issued by Ogra, petrol will be sold at Rs 112.76 per litre, High Speed Diesel (HSD) Rs 116.75 per litre and kerosene oil at Rs 108 per litre.

The Ogra had suggested an increase of Rs 0.85 per litre in petrol price, Rs 5.22 per litre in High Octane Blending Component (HOBC), Rs 1.18 per litre in kerosene oil, Rs 1.34 per litre in High Speed Diesel (HSD), Rs 0.82 per litre in Light Diesel Oil (LDO) and Rs 1.09 per litre in JP-1 price.

The reason for this increase was depreciation in the value of Pak rupee against US dollar. It should be noted that there is a decline in international oil prices. By start of November the US dollar was worth Rs 105 but now it has gone up to Rs 108.46, Ogra said. According to Ogra officials, federal government will provide an estimated Rs 2.8 billion as subsidy on petroleum products during December.

The government is collecting Rs 10 per litre on petrol, Rs 14 on HOBC, Rs 6 on kerosene and Rs 8 on HSD on account of Petroleum Levy (PL). Moreover, the government is also collecting General Sales Tax (GST) at the rate of 17 percent on the sale of petrol and petroleum products and the increase in the fuel prices will also increase the GST collection.

Copyright Business Recorder, 2013