Decision of hiking petroleum prices by Rs.16 to be taken today


KARACHI: The decision to increase petroleum products (POL) significantly from Tuesday, as the Oil and Gas Regulatory Authority (OGRA), has forwarded its summary in this regard to the Petroleum Division will be taken today.

According to sources, OGRA has recommended up to Rs16 per litre hike in petrol price and up to Rs14.75 per litre increase in the price of high-speed diesel (HSD) for the next 15 days. In summary, diesel’s price will be increased by Rs.14.75 per litre.

From 16th February, petroleum products are likely to go up by Rs.4.5 to Rs.5.5 per litre. The summary sent by OGRA also suggested an increase in the prices of light diesel and kerosene. The prime minister is expected to approve the only Rs.4 to Rs.5 per litre hike in POL prices since the government has the option to maintain or reduce oil prices by changing the rate of petroleum levy and other taxes imposed on oil prices.
It is to be noted that under the government’s instruction, OGRA is required to calculate oil prices on the basis of 17 percent general sales tax and maximum petroleum levy permissible under the law at Rs30 per litre on HSD and petrol.

In the last 75 days, the fedral government has increased petrol price by Rs11.21 per litre, HSD by Rs14.64 per litre, kerosene oil by Rs14.90 per litre, and LDO by Rs16.37 per litre.

It may be recalled that since December 1, petroleum products have gone up by Rs 16.37 per litre. Last month, the government had increased the price of petrol by Rs 2.70 per litre while the price of high-speed diesel was increased by Rs 2.88 per litre.