OGRA proposes hike of up to Rs10.5 in POL prices

New prices to be announced today, will be effective from September 16

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has recommended an increase of up to Rs10.50 per litre in prices of various petroleum products effective September 16.

In a summary moved to the Petroleum Division, Ogra has recommended an increase in prices of all the major petroleum products including petrol, high-speed diesel, kerosene oil and light diesel oil.

Ogra has recommended an increase of Re1 per litre in the price of petrol, Rs10.5 per litre in the price of diesel and Rs5.5 per litre each in prices of kerosene oil and light diesel oil.

It is worth mentioning that for the first fortnight of the current month the government had rejected an Ogra’s summary for increase of up to Rs5.11 per litre in the petroleum product prices and instead announced a nominal decrease in the rates.

The government has increased the petroleum levy on petrol and diesel by Rs2.11 per litre and Rs3.09 per litre respectively.

The existing price of petrol is Rs118.30 per litre. Petrol is used in cars and motorbikes. High-speed diesel, whose existing price is Rs115.03 per litre, is widely used in agriculture and transport sectors.

Kerosene oil is used in remote areas for cooking purposes where liquefied petroleum gas (LPG) is not available and its existing price stands at Rs86.80 per litre. The price of light diesel oil is Rs84.77 per litre.

Currently, the government is charging 10% customs duty and 10.54% general sales tax on petrol. The government has also imposed Rs2.09 per litre petroleum levy on petrol.

Besides, Rs4.15 per litre inland freight margin, Rs2.97 per litre OMCs margin and Rs3.91 per litre dealer commission are being charged on petrol.

Similarly, the government is charging 10% customs duty and 17% general sales tax on diesel. The government is also charging Rs5.14 per litre petroleum levy on diesel.

Besides, Rs1.59 per litre inland freight margin, Rs2.97 per litre OMCs margin and Rs3.30 per litre dealer commission are being charged on diesel.

New prices of petroleum products will be announced today (Wednesday) and they will remain effective from September 16 to September 30, 2021.

Published in The Express Tribune, September 15^th, 2021.

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