ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has recommended in a summary to the Petroleum Division that the price of petrol be reduced by Rs 5.26 per litre.
If approved, the reduction will bring the rate down from the existing Rs 88.07 to Rs 82.81 per litre.
Since petrol is the primary fuel for vehicles, a vast majority of consumers is likely to get some relief after rates come down with effect from April 1. However, the summary has recommended minor increase in the rates of petroleum products other than petrol.
Consumers of high-speed diesel may face an increase of Rs 0.65 per litre (0.7%), which would take its price to Rs 99.10 per litre from the existing Rs 98.45 per litre.
The price of kerosene may be increased from Rs 76.46 to Rs 76.59 per litre with an increase of Rs 0.13 per litre (0.2%). Kerosene is used in remote areas for cooking purposes where liquefied petroleum gas (LPG) is not available. Similarly, light diesel oil, which is mainly used for industrial purposes, may witness a hike of Rs 0.55 (0.8%), increasing from Rs 65.30 to Rs 65.85.
Prices of all petroleum products except for kerosene are deregulated, with OGRA only monitoring the prices.
At present, two types of taxes are being charged from consumers – petroleum levy and general sales tax. The government is charging higher rate of general sales tax at 31% on high-speed diesel (HSD), which is widely used in agriculture and transport sectors, while 17% is being charged on other petroleum products. In addition, the government is charging Rs8 per litre petroleum levy on HSD, Rs 10 per litre on petrol, Rs 6 per litre on light diesel oil (LDO) and Rs 3 per litre on the kerosene oil.
Published in Daily Times, March 31st 2018.
