Government rejects OGRA proposal, hikes petrol, diesel by Rs1.7, Rs2.3

ISLAMABAD: The government bumped up the prices of petroleum products following the rejection of the state oil and gas regulatory authority’s proposal to make an even bigger upward revision.

According to the Ministry of Finance notification, the new approved prices are as follows: petrol up Rs 1.70 to Rs 87.70 per litre, diesel up Rs 2.31 to Rs 98.76 a litre, kerosene oil up Rs 3.41 to Rs 79.87 per litre, and light diesel up Rs 3.55 to Rs 68.85.

The oil commodities’ prices came into effect (00:00 hours, Tuesday).

On the other hand, the Oil and Gas Regulatory Authority’s (OGRA) recommendation, which was rejected by the finance ministry, had advised a positive per-litre revision of Rs 3.22, Rs 5.20, Rs 6.97, and Rs 6.95 in petrol, diesel, kerosene oil, and light diesel, respectively.

Accordingly, expectations earlier on Monday had indicated that petroleum products’ per-litre prices would be: petrol to Rs 89.22, diesel to Rs 101.47, kerosene oil to Rs 83.43, and light diesel to Rs 72.25.

A 200 percent increase in the levy on petroleum products was also recommended, as suggested in the new budget for the fiscal year 2018-19.

Under the Finance Bill 2018, tax on diesel, petroleum, crude oil, and high-octane fuel is to be boosted from Rs 10 to Rs 30 per litre.

The same revision would be imposed on the levy pertaining to light speed diesel and gasoline, while that on local liquefied petroleum gas could go up 328%.

Presented by the Pakistan Muslim League-Nawaz (PML-N) on April 27, the budget — the incumbent government’s sixth one — had an outlay of Rs 5.933 trillion. It was presented amid the opposition’s strong protest against a full-year financial plan despite the fact that the current leadership’ remaining tenure is three months.

from The Daily Mail International – Leading English Newspaper from Pakistan https://ift.tt/2KvhUao