NewsMarch 30, 2019
Govt to announce another hike in petroleum prices to close revenue gaps
ISLAMABAD: The government is considering a major increase in the prices of all petroleum products for the month of April as currency devalues and international crude oil prices go slightly up.
According to the sources, on Friday, the Oil and Gas Regulatory Authority (OGRA) moved a summary to the government containing calculations on petroleum prices on the basis of existing rates of general sales tax and petroleum levy.
Based on import parity price of Pakistan State Oil (PSO) for purchase in March, Ogra has worked out about Rs11.17 per litre increase in the price of high speed diesel (HSD), Rs11.91 in petrol, Rs6.65 in kerosene and Rs6.49 in light diesel oil (LDO) .As such, the ex-depot rate of HSD has been calculated at Rs122.60 per litre from about Rs111.43, showing an increase of 10 per cent. Likewise, the ex-depot petrol price has been proposed to go up to Rs104.80 per litre from existing rate of Rs92.89 per litre, up 12.8pc.
The price of Brent benchmark had increased by less than 2pc over the last month from $66.57 on Feb 28 to $67.86 per barrel on March 28.
The price of kerosene has been proposed to be set at Rs92.96 per litre instead of Rs86.31, an increase of 7.7pc. The ex-depot price of LDO has been worked out at Rs84.03 per litre instead of existing Rs77.54pc litre, an increase of 8.4pc.
The government has already increased general sales tax (GST) on all petroleum products to standard rate of 17pc across the board to generate additional revenues. Until January this year, the government was charging 0.5pc GST on LDO, 2pc on kerosene, 8pc on petrol and 13pc on HSD.
Courtesy www.dailytimes.com.pk
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