The government is likely to increase petroleum prices by up to Rs8 per litre for the next 15 days if it decides not to increase existing tax rates, reports Dawn.
On the basis of existing tax rates, the Oil & Gas Regulatory Authority (OGRA) and Petroleum Division have worked out about Rs6 per litre increase in the price of petrol and of high speed diesel (HSD) by about Rs8 per litre. The increase for other products, which includes kerosene and light diesel oil, was also estimated to be in the same range.
An official said the government was considering an increase of petroleum levy by Rs4 per litre, either on Sunday or November 16. This would depend on its engagements with the International Monetary Fund (IMF) for the revival of its programme.
However, no official decision has been made yet. The official announcement would be made after consultations with Prime Minister (PM) Imran Khan on Sunday.
Currently, the government is charging about Rs5.62 per litre petroleum levy on petrol and Rs5.14 per litre on HSD. In addition, it is also charging about Rs9.29 per litre and Rs8.81 per litre customs duty on petrol and HSD respectively besides Rs9 and Rs13 per litre GST on these two products.
Energy Minister Hammad Azhar had said that the government was coming under pressure for giving up taxes on petroleum products.
At present, the price of petrol stands at Rs137.79 per litre and the price of HSD is at Rs134.48 per litre.
Earlier, the Finance Ministry of Pakistan warned the public about increasing the prices and transportation costs in the country.
