Petrol prices raised by 9pc Ogra’s New Year gift to nation

[Lahore_Real_Estate]

ISLAMABAD, Dec 31: The Oil and Gas Regulatory Authority gave a new year gift to the nation on Friday by raising prices of petroleum products by up to Rs7.69 per litre, or nine per cent.

Ogra announced the increase in prices after getting a green signal from Prime Minister Yousuf Raza Gilani. As a result, the rate of petroleum levy, which had been reduced last month, increased to Rs1.71 per litre on diesel, 16 paisa on HOBC, 31 paisa on kerosene and 73 paisa on light diesel oil.

According to a notification issued by Ogra, the price of petrol increased by Rs6.71 (9.2 per cent) per litre to Rs79.67 from Rs72.96, HOBC (high octane blending component) by Rs7.69 (8.9 per cent) to Rs94.36 from Rs86.67, kerosene by Rs4.04 (5.7 per cent) to Rs74.99 from Rs70.95 and LDO (light diesel oil) by Rs4.36 (6.55 per cent) to Rs70.97 from Rs66.61.

Oil marketing companies have been asked to increase the price of HSD (high speed diesel) by Rs4.25 (5.43 per cent) per litre to Rs82.58 from Rs78.33.
Diesel prices are notified by oil marketing companies after the deregulation of the product.

Ogra spokesman Syed Jawad Naseem, who announced the new prices, said that prices of kerosene, HSD, petrol and furnace oil had increased by 8.8, 9.3, 12.7 and 7.4 per cent, respectively, in the international market.

The crude oil price in the Arab Gulf market had surged by 11.6 per cent, Mr Naseem added.

Just before the announcement of petroleum prices, the Ogra website was closed. The spokesman attributed it to a technical fault.

Analysts are of the opinion that the decision will further push up inflation and the cost of industrial production.

The industry has already been under pressure because of higher electricity and gas rates and energy shortfalls. As a result of the increase in petroleum prices, the size of GST has increased proportionately because the tax at 16 per cent results in higher windfall revenue for the government.

The ex-depot prices also include a petroleum levy of Rs10 per litre on petrol, Rs14 on HOBC, Rs6 on kerosene, Rs8 on high speed diesel and Rs3 on light diesel oil for sale through retail outlets.

In case of direct sale by oil companies, the levy will be higher than the sale through retail outlets.

As such, the government will collect Rs12.36, Rs16.79, Rs6, Rs9.50 and Rs3 per litre, respectively, on petrol, HOBC, kerosene, HSD and LDO.