Ogra seeks raise in prices of petroleum products for January 2017

By Israr Khan

December 30, 2016

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has recommended to the government to make an increase of up to 16 percent in prices of all petroleum products for the month of January 2017.

In the working paper sent to the government, the authority has recommended an increase of 0.47 percent or Rs0.31 per litre in the prices of Motor Spirit (Petrol) which is widely used in cars and motorcycles owned by middle class commuters. Similarly Ogra has also proposed increase of 5.24 percent or Rs3.94 per litre in the prices of High Speed Diesel (HSD) mostly used in mass transportation and agriculture. Besides, 16.02 percent or Rs6.93 increase in the prices of Kerosene, 8.02 percent or Rs3.48 in the price of light diesel oil (LDO).

According to the summary moved to the Ministry of Petroleum and Natural Resources and the Ministry of Finance, an increase of RS0.31 per litre has been recommended in the price of Motor Spirit (Petrol), after the increase the price of petrol will go up to Rs66.58 per liter from the current Rs66.27. After the increase the prices of the High Speed Diesel will go up to Rs79.16 from the current Rs75.22 per litre.

The price of Kerosene after the increase of Rs6.93 will go up to Rs50.18 per litre from the existing Rs43.25 per litre and with the increase of Rs3.48 per litre, the price of Light Diesel Oil (LDO) will go up from the existing Rs43.35 to Rs46.83.

Against the standard 17 percent GST currently the government is collecting 31 percent GST on High Speed Diesel (HSD), 14.5 percent on Motor Spirit (Petrol), 17 percent on High Octane Blending Components (HOBC), 2.5 percent on Light Diesel Oil and 2 percent on Kerosene.

It is pertinent to mention here that for December also Ogra recommended an increase of 6.2 percent or Rs4.01 per litre in the prices of gasoline and an increase of 7.5 percent or Rs 5.42 percent in the price of High Speed Diesel. But, the government then increased the price of petrol by Rs2 and the diesel by Rs2.7.