ISLAMABAD: Consumers are likely to face hike of 11.4 per cent increase in the price of high speed diesel (HSD) widely used in different sectors in the country, effective from February 1, 2018.
The price of high speed diesel is likely to exceed Rs100 per litre if the government approved the recommendations of the regulatory authority.
The Oil and Gas Regulatory Authority (Ogra) on Tuesday also recommended an increase of 3.7 per cent in the price of petrol following fluctuation in global oil prices.
The regulator has recommended an increase in the prices of petroleum products of up to 20.1 per cent after the rates of crude oil surged in the international market.
The Ministry of Energy (Petroleum Division) has received a summary from Ogra on Tuesday that recommended an upward revision in oil prices.
The recommended an increase of Rs2.98 per litre (3.7%) in the price of petrol, Rs10.25 per liter (11.4%) high speed diesel, Rs12.74 per litre (19.8%) in the price of superior kerosene oil (SKO) and Rs11.72 per litre (20.1%) in the price of light diesel oil (LDO).
Hello 2018: Petrol price upped by Rs4.06 per litre
In case the government approves the determination of the regulator about the increase in prices of various petroleum products, petrol price will go up to Rs84.51 per litre from the current Rs 81.53.
The prices of SKO will go up to Rs77.06 per litre from the existing Rs64.32 per litre, and the price of light diesel oil (LDO) will go up to Rs70.09 from the existing Rs58.37 per litre.
After deregulation of HSD, the increase in its price has been worked out at Rs10.25 per litre -- from the existing Rs89.91 to Rs100.16.
Consumers were also paying higher rates of taxes on this product which was widely used in transport and agriculture sectors.
So, increase in the price of diesel will directly affect their lives as it would lead to corresponding hike in inflation.
At present the government was charging 31 per cent general sales tax against the budgeted rate of 17 per cent.
In addition, the consumers were paying Rs8 per litre petroleum levy on this product.
In the past couple of years – following a plunge in the global crude prices – the government has burdened petroleum consumers with general sale tax and petroleum levy.
Increasing Revenue: Petrol prices hiked in Saudi Arabia
Ogra proposed GST rate on various products at 17 per cent to maintain price stability and earn higher revenue.
On the Ogra recommended prices, the Federal Board of Revenue (FBR) will charge 17 per cent GST on petrol, including LDO and SKO.
Apart from 17 per cent GST, the government is also charging petroleum levy at 10.00 per litre on petrol, Rs6 per litre on kerosene oil and Rs3 per litre on LDO.
The summary was forwarded to the petroleum division as a routine practice.
It will send the summary onward to the finance ministry and the Prime Minister’s office for a decision. Under the practice, oil prices will be revised on Wednesday (today).