OGRA recommends reduction in petroleum product prices

The Oil and Gas Regulatory Authority (OGRA) has recommended a reduction in petrol price by Rs7.06/litre, kerosene Rs11.88/litre and light diesel oil (LDO) price by Rs9.37/litre for June 2020, reported The News.

The regulatory body has, however, suggested that the price of diesel should remain unchanged.

If the government accepts the suggestion of the authority, petrol price will come down from current Rs81.58/litre to Rs74.52/litre, kerosene price will come down to Rs35.56/ litre from current Rs47.44/litre and the LDO price will reduce to Rs38.14/litre from current Rs47.51 litre.

For diesel, OGRA has recommended a Rs0.05/litre increase to Rs80.15/liter.

It is worth mentioning that the government is charging 17% general sales tax (GST) on all petroleum products. Apart from it, the government is also collecting petroleum levy (PL) on these products, which is directly taken from consumers.

For May 2020, the government, in order to meet the revenue shortfall had increased the petroleum levy on these products. The petroleum levy on diesel was increased by Rs4.95 to Rs30/litre. The levy on petrol was increased by Rs4.01 to Rs23.76/litre. Petroleum levy on kerosene was also increased by Rs5.69 to Rs18.02/litre and PL on LDO was increased by Rs6.24 to Rs11.18/litre.

OGRA has moved the summary to the Ministry of Energy (Petroleum Division) and it will then be forwarded this document to the Finance Ministry for approval. The government will take a decision on Sunday, May 31.