OGRA recommends hike in prices of petroleum products

ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) in a summary has recommended to the government hike in the prices of petroleum products, ARY News reported on Saturday.

OGRA sources said that The regulatory body in a summary to the petroleum ministry has proposed per litre increase in petroleum price by Rs. 2.29 and kerosene price by Rs. 6.75 per litre.

The regulatory body has also suggested the government to increase diesel prices by Rs. 2.00 per litre.

It is pertinent to mention here that federal government is collecting over more than 17 percent sales tax on petroleum products.

According to the statistics released by Federal Board of Revenue (FBR), the largest share of sales tax comes from petroleum goods as the government collects Rs. 83 billion in sales tax from petrol products.

Analysts have stated that the federal government can chose the option of not increasing the prices of petroleum if it decides to lower the sales tax.