ISLAMABAD: The government is likely to increase the price of high-speed diesel by 5.2 per cent in the wake of fluctuations in global oil prices effective from May 1.
Increase in diesel price, widely used in transport and agriculture sectors, will lead to higher inflation rate.
The Oil and Gas Regulatory Authority (Ogra) recommended in a summary submitted to Ministry of Energy (Petroleum Division) that the price of petrol be increased by Rs3.22 per litre (3.7 per cent), raising the existing rate of Rs86 to Rs89.22 per litre.
If Ogra’s recommendations are implemented, consumers of high-speed diesel may have to pay Rs101.47 per litre against the existing Rs96.45 per litre.
The price of kerosene may also be increased from Rs76.46 to Rs83.43 per litre with a 9.1 per cent increase (or Rs6.97 per litre).
Similarly, price of light diesel oil may increase increase from Rs65.3 to Rs72.25 (An increase of Rs6.95 or 10.6 per cent).
Ogra’s summary also suggested Ministry of Prices of all petroleum products, except for kerosene, are deregulated, and Ogra is tasked with just monitoring the prices.
Currently, consumers are paying two types of taxes – petroleum levy and general sales tax. The government is charging higher rate of general sales tax at 31 per cent on high-speed diesel, while 17 percent is being charged on other petroleum products. Moreover, the government is charging Rs8 per litre petroleum levy on high-speed diesel, Rs10 per litre on petrol, Rs6 per litre on light diesel oil light diesel oil and Rs3 per litre on kerosene oil.