Govt keeps petroleum products prices unchanged

ISLAMABAD: While turning down the Oil and Gas Regulatory Authority (Ogra) proposal to reduce petrol and diesel prices and increasing the kerosene oil price by Rs15/litre, the government on Sunday announced that the prices of the petroleum products will remain unchanged in month of May as were in the previous month.

Minister for Finance Ishaq Dar on Sunday announced the prices of petroleum products for the period starting from May 01 until midnight on May 31. He said the Ministry of Petroleum and Natural Resources and Ogra had recommended a decrease of Rs1.20/litre in the price of petrol and decrease of Rs1.10/litre in the price of high speed diesel (HSD) for May, 2017. Similarly, an increase of Rs15.19/litre in the price of kerosene oil and Rs10.65/litre in the price of light diesel oil (LDO) was also proposed for the month under review. 

However, disallowing the relief of Rs1.2 and Rs1.10 per litre respectively in the prices of petrol and diesel to the consumers, the minister announced that the prime minister has directed to maintain the prices of petrol and HSD at existing levels till May 31.

The government on Sunday issued new SRO that allows increased GST on HSD from 29.5 percent to 33.5 percent and GST on motor spirit excluding high octane blended component (HOBC) from 15.5 percent to 20 percent. GST on kerosene and LDO will stay zero. The standard GST rate is 17 percent. Dar stated in line with the prime minister’s instructions to provide maximum relief to the common man, and keeping in view that kerosene oil and LDO is used by the low income segments of the country’s population, it has been decided to maintain the prices of kerosene oil and LDO at the current level till May 31.