OGRA recommends Rs4.5 per litre cut in petroleum prices next month

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Thursday in its summary to the government has recommended up to Rs4.50 per litre reduction in petroleum prices for the next month.

The regulator has suggested cut in fuel prices to transfer the benefit of lower prices in world markets to the consumers.

The regulatory authority has worked out a reduction of Rs4.5 per litre cut in high-speed diesel (HSD) to Rs102.20, petrol down by 50 paisa to Rs90.47 per litre, kerosene oil rate to go down by Rs2 to Rs80.98 per litre.

The new prices of the petroleum products will be announced after approval by the prime minister which will come into force from Feb 1.

The levies on petroleum products generate revenues for the government. The government presently receives 17 per cent general sales tax (GST) on all petroleum products. The government was charging 0.5pc GST on light diesel oil, 2pc on kerosene, 8pc on petrol and 13pc on HSD until Dec 31, 2018.

In Pakistan, petrol and HSD generate bulk of the revenue because of their massive and yet growing consumption in the country.

The petroleum prices have been been on the rise since early 2017 except for a few instances of reduction. The international benchmark Brent prices have tumbled by almost 20pc to less than $60 but the benefit scarcely to be transferred to consumers.