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POL products’ prices remain unchanged

ISLAMABAD: Federal government on Friday announced to keep the prices of petroleum products unchanged for first half of May ahead of Eidul Fitr.

The government rejected the recommendations of Oil and Gas Regulatory Authority (OGRA) to increase the prices of all petroleum products up to 13.7 percent for next 15 days with effect from May 1.

In a statement Finance Division said, “In line with the vision of the Prime Minister to provide relief to the consumers in the holy month of Ramazan, the government decided not to increase the prices of the petroleum products.

The cumulative revenue impact of the decision will be Rs 4.8 billion as the implementation of this proposal requires an adjustment in the rates of petroleum levy (PL) on all petroleum products and a reduction in sales tax as well in case of kerosene oil (SKO) and light diesel oil (LDO). The government was not charging any PL on SKO and LDO.

The regulator worked out an increase of Rs 5.76 per litre or 5.2 percent of petrol. The price of HSD to increase by 3.8 percent or Rs 4.18 per litre. The price of SKO also recommended to increase by 6.5 percent or Rs 5.19 per litre and LDO increase by 13.7 percent or Rs 10.64 per litre.

The regulator also worked out a reduction in the prices of LPG for the month of May. The decision to reduce the prices of LPG after CP price propane and butane came down from $560 per MT to $530 per MT.

The prices of LPG reduced by Rs 12 per kg which led to reduction in the price of LPG cylinder domestically by Rs 146 and commercial cylinder by Rs 562. In May, the LPG per kg reduced from Rs 146 to Rs 133 per kg and price of domestic cylinder also came down from Rs 1719 to Rs 1572. The commercial cylinder also came down to Rs 6050 from Rs 6612.

Addition: The government reduced rate of PL on petrol to Rs 6.39 per litre from Rs 11.23 per litre. The GST on petrol, however, remained unchanged at Rs 15.77 per litre notified for second quarter of April. The PSO cost of supply/ ex-refinery price of petrol increased from Rs 70.79 per litre to Rs 75.83 per litre with effect from May 1.

The government took a downward revision of PL on SKO for first half of May. The rate of PL on SKO reduced to zero from Rs 3.51 per litre and GST was also reduced to Rs 10.70 per litre from Rs 11.62 per litre. The prescribed price of SKO, however increased to Rs 66.51 per litre from Rs 65.51 per litre for next 15 days.

Copyright Business Recorder, 2021

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