Petrol prices likely to remain unchanged by the Interim Government

ISLAMABAD: The caretaker government is pondering on the decision of hiking petrol prices in Pakistan by Rs3 to Rs4 per litre, as per recommended by the Oil & Gas Regulatory Authority (OGRA) for the upcoming month of August 2018, as a result of Pakistani rupee devaluation.

According to sources, it is observed that the Oil and Gas Regulatory Authority (OGRA), has provided two recommendations related to price changes in Petroleum related products.

The proposals includes, to keep the prices same as of July 2018, and let the decision to be taken care by the incoming government which is more likely to be sworn in by the second week of August 2018.

The other proposal recommends price hiking of high-speed diesel (HSD) and petrol by Rs2.10 as proposed by OGRA.

OGRA has provided price hike on oil related products as per pricing formula, which states price hike of petrol by Rs3.50 per litre, Rs2.45 per litre in high speed diesel (HSD) and about Rs4 per litre in kerosene oil for the month of August 2018.

The caretaker government is emphasizing on the fact that they have done the price hike for petroleum related products for the month of July 2018,  and there is an immense chance that the prices remain unchanged till the formation of the upcoming government.

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Presently, the government is collecting 12% GST on petrol and kerosene, 24% on HSD and 9% on light diesel oil (LDO).

Furthermore, the government is also charging Rs8 per litre petroleum duty on HSD, Rs10 per litre on petrol and Rs6 and Rs3 per litre on kerosene and LDO, respectively.