Daily Times

The federal government on Wednesday increased the prices of all petroleum products for the month of August amid slight reduction in the international crude price.

The sources said that the government approved all the recommendations of the Oil and Gas Regulatory Authority (OGRA) for the current month. In the latest development, the government increased the price of petrol (motor spirit) by Rs 5.15 per litre and High Speed Diesel (HSD) by Rs 5.65. Similarly, the price of kerosene was increased by Rs 5.38 and Light Diesel Oil (LDO) by Rs 8.9 per litre.

Earlier on Tuesday, the OGRA had moved a summary to the government containing calculations on petroleum prices on the basis of higher general sales tax and petroleum levy.

According to an official, the crude price had dropped by more than 12 percent in the Arabian Gulf to $63 per barrel on July 30 from $72 on April 28, but the government had been gradually increasing tax rates.

The government fixed the ex-depot rate of HSD at Rs 132.47 per litre, instead of Rs 126.82, with an increase of about 4.45pc. Likewise, the government fixed ex-depot price of petrol at Rs 117.83 per litre from Rs 112.68 – up about 4.6pc.

Similarly, the ex-depot price of LDO was fixed at Rs 97.52 per litre from Rs 88.62 – up more than 10pc. The kerosene price was fixed at Rs 103.84 per litre, showing an increase of about 5.5pc over the current rate of Rs 98.46. The government is currently charging 17pc general sales tax (GST) on all petroleum products. Besides the GST, the petroleum levy ranging between Rs 14 and Rs 18 per litre is being charged on petrol and HSD and Rs 3 and Rs 6 on kerosene and LDO.

Petrol and HSD are two major products that generate most of revenue because of their massive and yet growing consumption in the country. Total HSD sales are touching 800,000 tonnes against monthly consumption of around 700,000 tonnes of petrol. The sales of kerosene and LDO are generally less than 10,000 tonnes per month.