The regulator has recommended an increase in the prices of petroleum products up to 20.1 percent after the rates of crude oil surged in the international market. The Ministry of Energy (Petroleum Division) received a summary from the OGRA that recommended an upward revision in the oil prices. The OGRA recommended an increase of Rs 2.98 per liter (3.7 percent) in the price of petrol, Rs 10.25 per liter (11.4 per cent) in the price of HSD, Rs 12.74 per liter (19.8 percent) in the price of superior kerosene oil (SKO) and Rs 11.72 per liter (20.1 percent) in the price of light diesel oil (LDO).
In case the government approves the determination of the regulator about increase in prices of various petroleum products, HSD price will go up to Rs 100.16 per liter from the current Rs 89.91. The prices of petrol will go up from Rs 81.53 per liter to Rs 84.51 per liter, the price of SKO will go up to Rs 77.06 per liter from the existing Rs 64.32 per liter and the price of LDO will go up to Rs 70.09 from existing Rs 58.37 per liter. After deregulation of high speed diesel (HSD), the increase in Pakistan State Oil's weighted average ex-refinery price of HSD, besides its IFEM, has been worked out effective from February. The government has also deregulated margins of oil industry on high speed diesel and they would determine its price based on weighted average price of the PSO.
In the past couple of years, following a plunge in global crude prices the government has burdened the petroleum consumers with general sale tax and petroleum levy. The OGRA proposed GST rate on various products at 17 percent to maintain price stability and earn higher revenue. However, the OGRA suggested 31 percent GST on HSD. On the recommended prices of the OGRA, the Federal Board of Revenue (FBR) will charge 17 percent GST on petrol, LDO and SKO. Apart from 17 percent GST, the government is also charging petroleum levy up to Rs 10.00 on prices of oil products.
According to the OGRA recommendations, the budgeted petroleum levy is Rs 10 per liter on petrol, Rs 6 on SKO and Rs 3 per liter on LDO. The summary was forwarded to the Petroleum Division as a routine practice. It will send the summary onward to the Finance Ministry and Prime Minister's Office for a decision.