ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has proposed the government to increase the prices of petrol by up to Rs 83.5 per litre on petrol and Rs 119 on diesel effective from April 16.
According to reports, OGRA has forwarded its report to Secretary, Ministry of Energy (Petroleum Division) for consideration and further necessary action. OGRA has sought a staggering price hike up to 35.7 percent in the per litre prices of petroleum products from April 16 for the remaining half of the current month.
The hike was made on the basis of the 70 percent of GST and Rs30 per litre of development levy. For petrol and diesel, the levy stands at Rs30 per litre and 17 percent of GST. The authority has suggested enforcing a Rs83.5 per litre hike on petrol on the basis of full levy and taxes, whereas, it was recommended to increase up to Rs119 per litre on diesel.
OGRA suggested increasing the petrol price up to Rs21.53 per litre in accordance with the prevalent tax rate, Rs51.3 on diesel, whereas, a Rs77.56 hike was proposed on kerosene oil on the basis of full tax and levy. For other petroleum products, a Rs77.31 hike was proposed for light diesel, Rs36.5 on kerosene oil and Rs38.89 on light diesel.
Existing notified petroleum levy and GST rate in petroleum product price is zero and OGRA’s working is also based on zero petroleum levy and GST rate. The massive hike was expected by the new government of Prime Minister Shehbaz Sharif
