The Oil and Gas Regulatory Authority (OGRA) has suggested that petroleum prices be raised by up to Rs. 119 beginning April 16, 2022.
The OGRA working paper forwarded to the Petroleum Division advocated an increase in petroleum prices based on the current zero petroleum levy and GST rate, as well as the maximum petroleum levy and GST rate.
Based on the maximum petroleum levy and GST rate, the working proposes a rise in high-speed diesel (HSD) prices by Rs. 119 per liter, petrol prices by Rs. 83.50 per liter, kerosene oil prices by Rs. 77.56 per liter, and light diesel oil (LDO) prices by Rs. 77.31 per liter.
The approach based on the zero petroleum levy and GST rate, on the other hand, proposes an increase in high-speed diesel (HSD) prices by Rs. 51.32 per liter, petrol prices by Rs. 21.30 per liter, kerosene oil prices by Rs. 36.5 per liter, and light diesel oil (LDO) prices by Rs. 38.89 per liter.
Prime Minister Shahbaz Sharif has the final say on whether to raise the price of petroleum products. On Wednesday, the prime minister presided over an extraordinary meeting to evaluate petroleum product prices.
The OGRA Chairman updated the premier on the petroleum price mechanism and various options for continuing the subsidy in light of the IMF commitments.
It is worth noting that in February, former Prime Minister Imran Khan announced a Rs. 10 per liter drop in petroleum prices, stating that the new rates will be in effect until the FY23 budget.
Global crude oil prices have risen since then, but petroleum product prices in Pakistan have remained steady.
Petrol is currently priced at Rs. 149.86 per liter, while diesel, kerosene oil, and light diesel are priced at Rs. 144.15 per liter, Rs. 125.56 per liter, and Rs. 118.31 per liter, respectively.
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