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October 1, 2020

Petrol price unchanged, diesel cut by Rs2.4/litre

Top Story

October 1, 2020

ISLAMABAD: The government on Wednesday decided to keep petrol price unchanged while reduced the price of High Speed Diesel by Rs2.40/litre for the next 15 days starting from Thursday (today). "No increase in price of petrol and decrease of Rs2.40/ litre in diesel for the next 15 days," the Prime Minister's Office said. It is worth mentioning that Oil and Gas Regulatory Authority (Ogra) had suggested to the government to cut the prices of petrol by Rs1.15/litre and diesel by Rs2/litre for the first half of October 2020. The authority had also asked the government to keep the kerosene oil and Light Diesel Oil (LDO) prices unchanged.

However, the government rejected its proposal for reducing the petrol prices and kept it unchanged, however reduced diesel prices. The prices of kerosene oil and LDO were also kept unchanged.

After the latest decision, petrol price will remain unchanged at Rs103.97/litre, while diesel reduced to Rs104.06/litre from Rs106.46 per liter earlier. The kerosene price will remain at 65.29 and LDO at Rs62.86/litre for the next 15 days.

It is worth mentioning that the government is charging 17% 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.

On the other hand, it increased local LPG price by 2.45 percent to Rs1416.29 /11.8kg cylinder for October 2020.

In absolute terms, this is an increase of R33.91/11.8kg cylinder from Rs1,382.38/cylinder in September. The new prices are effective from October 1.

The Oil and Gas Regulatory Authority (Ogra) notified the new rates, under which the LPG price has been increased by Rs2.87/kg to Rs120/kg from the September price of Rs117.15/kg.

According to the Ogra notification, the producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at 62,915.78/ton compared to Rs57,757.33/ton in September. This price included excise duty of Rs85/ton, while excluding the petroleum levy. Under this head, the producer price of Rs742.41/11.8kg cylinder has been worked out.

Marketing/distribution margin has been set at Rs35,000/ton or Rs413/cylinder, a petroleum levy of Rs4,669/ton would also be charged, which would translate into Rs55.09/cylinder.

Prior to the imposition of GST, the consumer price would be Rs102584.78/ton compared with Rs97426.33/ton in September, while the price of 11.8kg cylinder is Rs1210.5.

Additionally, a GST of 17 percent (or Rs17439.91/ton) or Rs205.79 for a cylinder is being added. The final consumer price per ton would be Rs120,024.19 or Rs1416.29/cylinder.

It is worth mentioning that since July 2019, LPG price is hovering between Rs1,327.76 and 1067.39/cylinder.