ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Thursday suggested no change in the prices of petrol and diesel for October.
However, it worked out increase in the prices of almost all other petroleum products that are not in common use.
In its working paper, Ogra based on existing high tax rates calculated just a 10 paisa per litre increase in the price of petrol and a 28 paisa per litre reduction in the price of high speed diesel for the next month. Therefore, it wanted a no change in the prices of both products.
Ogra forwarded its working paper to government on the basis of existing tax rates under instructions from Finance Minister Ishaq Dar. A final decision about the adjustment in oil prices would be announced on Friday.
Petrol, diesel prices kept unchanged
Based on existing tax rates and PSO purchases from international market, Ogra worked out the ex-depot price of petrol at Rs64.37 per litre for next month instead of Rs64.27, an increase of 0.2pc. The regulator estimated the ex-depot sale price of HSD to go down by 0.28 paisa or 0.4pc to Rs72.13 instead of Rs72.52 per litre.
On the other hand, Ogra calculated the price of high octane blending component at Rs76.13 per litre instead of Rs72.58 per litre, an increase of Rs3.55 per litre or 4.9pc. It also recommended ex-depot price of kerosene to increase by R2.71 per litre (6.3pc) to Rs45.96 per litre from Rs43.25. Likewise, it worked out ex-depot price of light diesel oil at Rs42.15 per litre instead of Rs43.42, up Rs1.81 or 4.2pc.
Also, it suggested 4.1pc increase in the price of jet petrol (JP-1) to Rs42.19 per litre instead of Rs40.52.
Currently, the government is collecting about Rs25 per litre taxes on petrol in the form a fixed sales tax and petroleum development levy. Similarly, it is collecting about Rs35 per litre taxes on high-speed diesel (HSD).
Petrol and HSD are the two major products that generate most of revenue in oil sector. The HSD sales are average 600,000 tonnes per month against monthly consumption of around 400,000 tonnes of petrol while kerosene sales are less than 10,000 tonnes per month and that of HOBC less than 6,000 tonnes per month on average.