Rs6 Hike on Petrol Price anticipated in November
ISLAMABAD: On the basis of its calculations, the Oil and Gas Regulatory Authority (Ogra) has worked out a substantial increase in prices of petroleum products for the month of November because of the increase in prices of the products in international markets in October.
But it also said that the prices of petroleum products could be maintained at the existing level or could even be brought down if tax rates on these products – the highest in the country’s history – were partially reduced or brought back to the budgeted position.
Based on existing tax rates and PSO purchases from international market, Ogra worked out an increase of Rs5.28 per litre in the ex-depot price of petrol for Oct to Rs79.04 from Rs73.76 per litre. The government is currently charging taxes of Rs25.11 per litre, including Rs15.22 per litre (26 pc GST) and Rs9.89 per litre as petroleum levy.
The regulator also calculated the price of high speed diesel at depots at Rs85.38 per litre with an increase of Rs3.34 per litre if the current higher tax rates were kept unchanged. The government is collecting Rs37.31 per litre taxes, including Rs27.35 per litre GST on HSD and Rs7.96 as petroleum levy.
The ex-depot price of kerosene oil has been calculated to go up by Rs3.79 per litre to Rs60.90 per litre. The government is charging Rs16.88 per litre tax on the poor man’s fuel, including Rs13.18 per litre (30 per cent) GST and Rs3.70 as petroleum levy.
Ogra has worked out the price of high octane blending component at Rs85.52 per litre, an increase of Rs5.73. The government is collecting Rs27.32 per litre tax on HOBC, including Rs15.44 per litre (24 pc) GST and Rs11.88 as petroleum levy.
It has worked out ex-depot sale price of light diesel oil at Rs56.29 per litre, up by Rs2.70 per cent from Rs53.59 per litre. The government is charging Rs13.27 per litre as tax including Rs12.21 per litre (29.5 per cent) GST and Rs1.06 as petroleum levy.
A senior government official said the government had already collected substantially higher taxes on oil products than budgeted and had enough cushion to maintain the existing oil prices without affecting its revenue target.
But, he said, the finance ministry would like to increase the prices to make up for inability of the tax machinery to meet revenue targets which had already faced over Rs50 billion shortfalls in the first quarter of the fiscal year.
A final decision will, however, be made after consultations with the International Monetary Fund (IMF) mission now in talks with the government in Dubai and after the approval by the prime minister.
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