OGRA recommends a significant increase in petroleum prices of up to Rs. 119
The Global Energy crisis has shaken the world’s strongest economies but it created a massive impact on third world countries with feeble economies. The rise in petrol prices has become a talk of the town as a large population is finding it hard to commute amidst the current petrol crisis.
The Oil and Gas Regularity Authority (OGRA), has suggested an increase in petroleum prices up to Rs. 119 and it will be effective from 16th April 2022. The authorities at OGRA presented a solid rationale for the increase in petrol prices based on zero petroleum levy and GST and maximum petroleum levy and GST rate.
The maximum petroleum levy and GST rate propounded an increase of Rs. 119 per litre on high-speed Diesel (HSD), an increase of Rs. 83 per litre on Petrol, prices of kerosene oil will increase by Rs. 77 per litre, and Light Diesel Oil will increase by Rs. 77.31 per litre.
On the other end of the spectrum, as per zero petroleum levy and GST rate, the prices of high-speed Diesel will increase by Rs. 51.32 per litre. Moving on, Petrol and Kerosene Oil will increase by Rs.21.3 per litre and Rs. 36.5 per litre respectively. Lastly, the price of Light Diesel Oil will increase by Rs. 38.89 per litre.
The incumbent Prime Minister was briefed about the mechanism of prices and subsidies considering the commitments with IMF. It is important to mention that back in February the former Prime Minister, Imran Khan announced a reduction of Rs. 10 in petrol prices and further announced that the new rates will not be changed till the FY23 budget.
The global petroleum price kept rising but the petrol prices in Pakistan remained unchanged. Currently, the price of petrol is 149.86 per litre and let’s see where it goes now.