OGRA recommends reduction in petroleum product prices

OGRA recommends reduction in petroleum product prices

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The Oil and Gas Regulatory Authority (OGRA) proposed to reduce gasoline prices in June 2020 by 7.06 rupees / liter, kerosene by 11.88 rupees / liter, and light diesel oil (LDO) by 9.37 rupees / liter.

However, regulators recommend that diesel prices should remain unchanged.

If the government accepts the recommendation of the authorities, the price of gasoline will rise from the current 81.58 rupees / 74.52 rupees / litre, the price of kerosene will decrease from the current 47.44 rupees / litre and the LDO will drop to 35.56 rupees / litre from the current 47.51 rupees to Rs 38.14 / litre.

For diesel, OGRA recommends increasing Rs0.05 / liter to Rs80.15 / liter.

It is worth mentioning that the government imposes a general sales tax (GST) of 17% on all petroleum products. In addition to this, the government also imposes oil tax (PL) on these products, and collects oil tax directly from consumers.

By May 2020, the government increased oil taxes on these products in order to make up for the lack of income. The oil tax on diesel has increased by Rs 4.95 to Rs 30 per litre. The gasoline tax has been increased by 4.01 rupees to 23.76 rupees per liter. The oil tax imposed on kerosene has also increased by Rs 5.69 to Rs18.02 / liter, and the tax rate imposed on LDO has also increased by Rs6.24 to Rs11.18 / liter.

OGRA has transferred the summary to the Ministry of Energy (Ministry of Petroleum) and then forwarded it to the Ministry of Finance for approval. The government will make a decision on Sunday, May 31.

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