Saturday June 25, 2022

Ogra recommends cut in prices of petroleum product

May 30, 2020

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has recommended to the government to reduce petrol price by Rs7.06/litre, Kerosene Rs11.88/litre and light diesel oil (LDO) price by Rs9.37 per litre for June 2020.

The regulatory body has suggested that the price of diesel should remain unchanged. If the government accepts the suggestion of the authority, petrol price will come down from current Rs81.58/litre to Rs74.52/litre, Kerosene price will come down to Rs35.56/ litre from current Rs47.44/litre and the LDO price will reduce to Rs38.14/litre from current Rs47.51 litre. For diesel, it has recommended only Rs0.05/litre increase to Rs80.15/liter.

It is worth mentioning that the government is also 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, which is directly taken from consumers.

For May 2020, the government, in order to meet the revenue shortfall had increased the petroleum levy (PL) on these products. The PL on diesel was increased by Rs4.95 to Rs30 per litre. The levy on petrol was increased by Rs4.01 to Rs23.76 per litre. PL on kerosene was also increased by Rs5.69 to Rs18.02 per litre and PL on LDO was increased by Rs6.24 to Rs11.18 per litre.

Ogra has moved the summary to the Ministry of Energy (Petroleum Division) and it will then be forwarded this document to the Finance Ministry for approval. The government would take decision on May 31(Sunday).