Ogra for hike in fuel price due to GST raise

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has sent a summary to the federal government, asking for a raise in the price of petroleum products by up to Rs12.62 per litre from March 1 in the wake of the additional imposition of General Sales Tax (GST).
The regulator has recommended to the government to increase the prices of petroleum products by up to Rs12.62 per litre except the price of high speed diesel. The regulator asked the Ministry of Petroleum and Natural Resources to hike the price of petrol (motor gasoline) by Rs5.59 per litre, HOBC by Rs12.62 and kerosene oil by Rs7.32. Ogra has also suggested to the ministry to jack up the price of light diesel oil (LDO) by Rs5.50 per litre, asking for lowering the price of high speed diesel by Rs5.49 per litre.
In case the government does not reduce the GST on petroleum products that stands at 27 percent, then the new price of petrol to be effective from March 1 will stand at Rs75.88 per litre, HOBC Rs92.93 and kerosene oil Rs68.76.
The government increased the GST on petroleum products from 17 percent to 22 percent and then it further jacked the GST up to 27 percent, fearing a shortfall in tax revenue on petroleum products by Rs60 billion in the ongoing financial year. The Finance Ministry raised the GST by 10 percent to reduce the volume of huge loss in revenue because of a decrease in petroleum products prices.
Likewise, the new price of light diesel oil (LDO) will surge to Rs63.44 per litre and the new price of high speed diesel will plunge to Rs75.12 per litre from Rs80.61 per litre. The official sources said that in case the government decides to reduce the GST, then the price of petroleum products will come down. They said the prime minister is going to approve tomorrow (February 28) the new prices of petroleum products to be effective from March 1, 2015.