ISLAMABAD: Despite a decline in international oil prices, the government decided on Saturday to raise prices of petrol and high octane blending component (HOBC) for January. Prices of other petroleum products were kept unchanged.
According to a notification issued by the Oil and Gas Regulatory Authority (Ogra), the price of petrol has been increased by Rs1.65 to Rs89.54 per litre and that of HOBC by Rs5.13 to Rs111.91 per litre.
Ogra had suggested to the petroleum ministry that prices of petrol and diesel be maintained at the current level, but the ministry decided on Saturday evening to raise the price of petrol by Rs1.65 per litre and that of high speed diesel (HSD) by Re1 per litre.
However, the ministry withdrew its decision late in the night and asked Ogra to keep the diesel price unchanged at Rs98.82 per litre, but did not revise its decision on petrol.
Rates for kerosene will remain unchanged at Rs89.24 per litre and for light diesel oil (LDO) at Rs86.78 per litre.
An official in the petroleum ministry said the prices had been raised because of a decline in the value of the rupee against the dollar in December. The price of petrol was raised to offset the recent increase in CNG prices, he added.
The government collects Rs10 per litre as petroleum levy on petrol, Rs4.82 on kerosene, Rs6.04 on HSD and Rs2.72 on LDO.
The government collected Rs106 billion as GST and Rs34 billion as petroleum levy on petroleum products during the first six months (July-Dec) of the current fiscal year. The collection of GST during the same period last year stood at Rs86 billion while that of petroleum levy at Rs54 billion.
The total collection of petroleum levy and GST during the first six months of both the current and previous fiscal years are same at Rs140 billion.
The petroleum ministry official said that about Rs250 billion was expected to be collected by the end of current financial year on account of GST and petroleum levy on petroleum products.
“This computation is made by the finance ministry because matters relating to tax collection are dealt with by the Federal Board of Revenue, which is under the finance ministry,” he said.
The government remained in a fix over the authority for calculating and determining the prices petroleum products on a monthly basis.
The Economic Coordination Committee of the cabinet had on Oct 6 last year decided to deregulate ex-refinery and ex-depot prices of petrol, HOBC, LDO and jet fuels (JP-1, JP-4 and JP-8). As per the ECC decision, oil refineries fix ex-refinery prices and oil marketing companies decide and announce ex-depot prices.
However, the inland freight equalisation margin (IFEM) on these products is determined by Ogra, which is also responsible for computing ex-refinery and ex-dept prices of HSD, kerosene and E-10 — the only bio-fuel of the country — but a final decision on oil pricing is taken by the petroleum ministry in consultation with the finance ministry.
“Finally, the prices of all petroleum products are notified and announced by Ogra late night at the end of every month,” an Ogra spokesman said when asked why prices are announced late in the night.
According to a notification issued by the Oil and Gas Regulatory Authority (Ogra), the price of petrol has been increased by Rs1.65 to Rs89.54 per litre and that of HOBC by Rs5.13 to Rs111.91 per litre.
Ogra had suggested to the petroleum ministry that prices of petrol and diesel be maintained at the current level, but the ministry decided on Saturday evening to raise the price of petrol by Rs1.65 per litre and that of high speed diesel (HSD) by Re1 per litre.
However, the ministry withdrew its decision late in the night and asked Ogra to keep the diesel price unchanged at Rs98.82 per litre, but did not revise its decision on petrol.
Rates for kerosene will remain unchanged at Rs89.24 per litre and for light diesel oil (LDO) at Rs86.78 per litre.
An official in the petroleum ministry said the prices had been raised because of a decline in the value of the rupee against the dollar in December. The price of petrol was raised to offset the recent increase in CNG prices, he added.
The government collects Rs10 per litre as petroleum levy on petrol, Rs4.82 on kerosene, Rs6.04 on HSD and Rs2.72 on LDO.
The government collected Rs106 billion as GST and Rs34 billion as petroleum levy on petroleum products during the first six months (July-Dec) of the current fiscal year. The collection of GST during the same period last year stood at Rs86 billion while that of petroleum levy at Rs54 billion.
The total collection of petroleum levy and GST during the first six months of both the current and previous fiscal years are same at Rs140 billion.
The petroleum ministry official said that about Rs250 billion was expected to be collected by the end of current financial year on account of GST and petroleum levy on petroleum products.
“This computation is made by the finance ministry because matters relating to tax collection are dealt with by the Federal Board of Revenue, which is under the finance ministry,” he said.
The government remained in a fix over the authority for calculating and determining the prices petroleum products on a monthly basis.
The Economic Coordination Committee of the cabinet had on Oct 6 last year decided to deregulate ex-refinery and ex-depot prices of petrol, HOBC, LDO and jet fuels (JP-1, JP-4 and JP-8). As per the ECC decision, oil refineries fix ex-refinery prices and oil marketing companies decide and announce ex-depot prices.
However, the inland freight equalisation margin (IFEM) on these products is determined by Ogra, which is also responsible for computing ex-refinery and ex-dept prices of HSD, kerosene and E-10 — the only bio-fuel of the country — but a final decision on oil pricing is taken by the petroleum ministry in consultation with the finance ministry.
“Finally, the prices of all petroleum products are notified and announced by Ogra late night at the end of every month,” an Ogra spokesman said when asked why prices are announced late in the night.
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