By Khaleeq Kiani- Dawn
The Oil and Gas Regulatory Authority (Ogra) increased prices of petroleum products on Sunday by Rs3 to Rs7.4 per litre, or up to 9.37 per cent, with immediate effect in line with a rise in the international market.
According to a notification issued by Ogra, the price of petrol was increased by Rs6.10 per litre to Rs71.21 from Rs65.11, up by 9.37 per cent. High octane blending component (HOBC) price went up to Rs86.84 from 79.43 per litre, by Rs7.41 or 9.33 per cent.
The ex-depot sale price of kerosene was jacked up to Rs64.07 from Rs60.75 per litre, up about 5.5 per cent or Rs3.32. The price of light diesel oil was increased to Rs61.07 from Rs58.10, by Rs2.97 per litre or 5.11 per cent.
Oil marketing companies were asked to increase the price of high speed diesel to Rs71.89 per litre from Rs68.56 by Rs3.33 or 4.86 per cent.
The prices of jet fuel were increased by five to 5.35 per cent – JP-1 by 5.35 per cent, JP-4 5.12 per cent and JP-8 five per cent.
Since July, petroleum prices have been increased four times and reduced twice.
The increase in petroleum prices is expected to add to the rising inflation and the cost of industrial production that was already under pressure because of higher electricity and gas charges.
As a result of an increase in import prices, the profit margins of dealers and oil marketing companies have increased by 11.5 per cent and 12 per cent. The collection of general sales tax has increased by up to 9.5 per cent.
The dealers’ commission is paid at four per cent, companies’ margin is five per cent and the GST 16 per cent.
The government will now earn 50 paisa to Re1 per litre additional GST and dealers and OMCs will earn 20-30 paisa per litre higher profit on various products.
Ogra said the prices had been increased because of a surge in the international market after adjusting depreciation in exchange rate during January of about 0.6 per cent.
The authority said the cost of motor spirit had increased by 9 per cent, kerosene and high speed diesel by 5 per cent, furnace oil by 4 per cent and crude prices by 2 per cent in the Arabian Gulf market.
A notification issued by the ministry of water and power said the ex-depot prices announced by Ogra would include a petroleum levy of Rs10 per litre on petrol, Rs14 on HOBC, Rs6 on kerosene, Rs8 on high speed diesel and Rs3 on light diesel oil for sale through retail outlets.
In case of direct sales by oil companies, the levy will be higher and the government will collect Rs12.36 per litre on petrol, Rs16.79 on HOBC, Rs6 on kerosene, Rs9.5 on HSD and Rs3 on LDO.
Last month, the government had reduced petroleum prices by 1.3 to 3.5 per cent.