Oil prices set to rise by up to Rs3.66 per litre

The impact of the increase in GST is also included in the proposed oil price increase.

ISLAMABAD: The oil prices are expected to be increase by up to Rs3.66 per litre effective from July 1, following fluctuations in global oil prices and increase in rate of General Sales Tax (GST). 

To provide relief to consumers, the Oil and Gas Regulatory Authority (Ogra) asked the petroleum and finance ministries on Friday to adjust the rate of Petroleum Levy (PL) on petroleum products instead of increasing oil prices.

As per the provisions of federal budget 2013-14, GST increased to per cent from 16 per cent, a move which has affected oil prices as well.

Sources said that the impact of the increase in general sales tax is also included in the proposed oil price increase which is to take effect from July 1.

After the new prices are approved by the Prime Minister, the federal government will issue a notification on June 30.

Due to an increase in the rate of GST, the price of petrol will go up by Rs0.86 per litre, High Speed Diesel (HSD) by 90 paisa, Light Diesel Oil (LDO) by Rs0.65, Kerosene oil by Rs0.80 and High Octane Blending Component (HOBC) by Rs1.07 per litre.

The consumers of HSD, which is mostly used in the transport and agriculture sector will see an increase of Rs3.66 per litre which will bring its price up to Rs108.26.