OGRA recommends up to 15% increase in POL prices

If given the green light, petrol to be dearer by Rs14.37

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Monday recommended the federal government to increase prices of petroleum products by up to 15 per cent for May, following fluctuation in global oil prices.

Ogra has calculated an increase of Rs14.37 per litre in motor spirit (MS), Rs4.39 per litre high speed diesel (HSD), Rs7.45 kerosene oil and Rs6.40 light diesel oil (LDO).

If given approval, the rate of petrol would reach Rs113.26 per litre from the current Rs98.89, reflecting an increase of 15 per cent.

With an increase of 3.7 per cent, the HSD price would go up from Rs117.43 per litre to Rs121.82.

Similarly, the price of LDO would go up by 6.40 per cent to Rs86.94 per litre from the present Rs80.54. The kerosene oil rate is expected to increase by Rs7.45 per litre to Rs 96.76 per litre.

The government is likely to pass on a partial increase in oil prices by making adjustment in the rate of general sales tax (GST) and petroleum levy in order to absorb most of the recommended surge in prices ahead of Ramazan.

The government charges 17 per cent GST on petroleum products, and Rs18 per litre petroleum levy on HSD and Rs14 on petrol.

The impact of rupee depreciation against the dollar is incorporated in HSD and petrol prices, while the remaining increases are due to the rise in crude oil rates. In April, the crude oil price was around $75 per barrel.