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HomeBusinessEconomyPetroleum prices may increase again by Rs28.44

Petroleum prices may increase again by Rs28.44

A price increase for petroleum products of up to Rs28.44 per litre has been estimated by the Oil and Gas Regulatory Authority (OGRA) and could take effect on August 1.

According to regulatory agency sources, based on the current rate of petroleum levy, the estimated ex-depot price of gasoline may rise by Rs6.53, high-speed diesel (HSD) by Rs28.44, kerosene oil (SKO) by Rs11.02, and light diesel oil (LDO) by Rs5.64 per litre (PL).

The Finance Division will move a summary on Saturday (today) that calls for an increase in gas prices of up to about 11% starting August 1. The final decision in this matter will, as usual, be made by the prime minister.

The Economic Coordination Committee (ECC) had earlier approved the petroleum dealers’ increased margin, which will result in higher prices for gasoline and HSD if the government decides to include the Rs7 per litre petroleum dealer’s percent in the pricing structure.

Dealers had received guarantees from the Petroleum Division that the government would start using the margin on August 1, 2022.

The price of gasoline would rise from Rs230.24 to Rs236.77 per litre, the price of HSD from Rs236.00 to Rs264.44 per litre, the price of SKO from Rs196.45 to Rs207.47 per litre, and the price of LDO from Rs191.68 to Rs197.32 per litre, in accordance with these projected prices.

Currently, there is no sales tax, a PL of Rs. 10 per litre on gasoline, and PLs of Rs. 5 on HSD, SKO, and LDO.

The National Assembly has approved raising the maximum limit of PL from Rs30 per litre to Rs50 per litre in order to meet the budgetary goal of Rs750 billion set forth in the Finance Bill 2022–23.

The government would only be able to recoup a maximum of Rs14 billion per month, or 750 billion rupees, from PL at the current rate, according to sources in the petroleum division, who also believed that the government was unlikely to collect 750 billion rupees from PL in the current fiscal year.

Additionally, a revenue shortfall of Rs45 billion per month is likely if the 17.5% general sales tax (GST) is not applied to these goods.

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