The Oil and Gas Regulatory Authority (OGRA) has proposed to increase the prices of oil amid decreasing crude oil prices, worldwide. The proposed increase in price are as follows:
- 45pc increase in the price of High-Speed Diesel (HSD), from Rs 126.82 to Rs 132.47
- 6pc increase in the prices of petrol, from Rs112.68 to Rs117.83
- Approximately 10pc increase in prices of Light Diesel Oil (LDO), from Rs 88.62 to Rs97.52
- 5pc increase in Kerosene prices, from Rs98.46 to Rs103.84
The point to note here is that the oil prices per barrel in the Arabian Gulf were $72/barrel on April 28 and decreased to $63/barrel on July 30. Amid this decrease in prices, the oil prices in Pakistan kept on rising due to the new taxation policies of the government.
The government is currently charging 17pc General Sales Tax (GST)on all petroleum products in addition to the Rs14-18/liter levy being charged on petrol and HSD and Rs3-6 levy being charged on kerosene and LDO.
Petroleum products are a huge and constant source of revenue for the government. With the sales of HSD touching 800,000 tons/month, petrol sales being 700,000 tons/month and sales of kerosene and LDO around 10,000 tons/month.