ISLAMABAD: Owing to increase in crude prices in the international market, the Oil and Gas Regulatory Authority (Ogra) has suggested to the government to increase petroleum products’ prices up to 1.9 percent for the month of February 2020.
Under monthly review, the regulator has suggested a decrease of Rs 6 paisa per litre or 0.1 per cent for petrol. However, it has recommended an increase of Rs2.47/litre (1.9 percent) for high speed diesel (HSD) and the price of Light Diesel Oil (LDO) which is an industrial fuel may be increased by Rs1.10 per litre or 1.3 percent. The price of kerosene has been recommended to decrease of 66 paisa /litre (or 0.7 percent).
The government is charging 17 percent general sales tax (GST) on all petroleum products. Apart from it, the government is also collecting Petroleum Levy (PL) on these products.
Currently, the government is charging Rs18 per litre petroleum levy on diesel, Rs15 on petrol, Rs6 on kerosene and Rs3 on LDO. During the previous government, the Petroleum Levy was charged up to Rs 10 per liter on these products; however, the GST was higher than the current rate.
Official said Ogra had sent the summary to the Ministry of Energy (Petroleum Division) which would be then forwarded to the Finance Ministry for approval. The government would take decision on it on Friday.
If the government accepts this recommendation, the petrol price will go down from the existing Rs116.60 per litre to Rs116.54/litre, and hsd price will increase to Rs129.73/litre from the current Rs127.26/litre.
The price of LDO will increase to Rs85.61 per litre from 84.51/litre. Kerosene price will come down from the current Rs99.45/litre to Rs 98.79 per litre. Kerosene is used for cooking purposes, especially in remote areas where LPG or pipeline gas is not available.
Since July 2019, Pakistan is also receiving monthly Saudi oil supplies worth $275 million on deferred payment. Under this arrangement, Pakistan would get this oil facility to the tune of $9.9 billion over next three years.
The price of Brent oil so far this month stand at 64.49$ a barrel, compared with 67.31$ the previous month. Over last twelve months the price has increased by 8.55 percent.