Petrol price likely to go up by Rs83.5, diesel by Rs119

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has proposed the federal government make a massive hike in fuel prices, up to Rs83.5 per litre on petrol and Rs119 on diesel, ARY News reported on Thursday.

The OGRA has sent a summary to the Petroleum Division for making a massive hike in fuel prices in Pakistan from April 16.

Sources told ARY News that the suggested hike was made on the basis of the 70 per cent of GST and Rs30 per litre levy. For petrol and diesel, the prevalent levy stands at Rs30 per litre and 17 per cent of GST.

The authority has suggested enforcing a Rs83.5 per litre hike on petrol on the basis of full levy and taxes, whereas, it was recommended to jack up Rs119 per litre on diesel.

It was learnt that the OGRA suggested increasing the petrol price up to Rs21.53 per litre in accordance with the prevalent tax rate, Rs51.3 on diesel, whereas, a Rs77.56 hike was proposed on kerosine oil on the basis of full tax and levy.

For other petroleum products, a Rs77.31 hike was proposed for light diesel, Rs36.5 on kerosine oil and Rs38.89 on light diesel at the full tax rate and levy.

Sources said that the final decision on the OGRA summary will be taken by the finance ministry after consulting Prime Minister Shehbaz Sharif.

Hammad Azhar, former energy minister and the current focal person for economy of Pakistan Tehreek-e-Insaf (PTI), said in a Twitter message, “At prevalent taxes the rate increase OGRA has asked for is Rs 21/litre in Petrol and Rs 51/litre in Diesel. This is the differential that PTI govt was subsidising effectively to provide relief to the masses.”

“OGRA always depicts two options in its proposal; one with full taxes & one with prevalent. Media picked the figure with full taxes scenario,” said Azhar.

At prevalent taxes the rate increase OGRA has asked for is Rs 21/litre in Petrol and Rs 51/litre in Diesel. This is the differential that PTI govt was subsidising effectively to provide relief to the masses. 1/2

— Hammad Azhar (@Hammad_Azhar) April 14, 2022

“We hope that the complete price differential mechanism built by us to provide relief to the masses will not be disturbed by imported govt,” he added.