Oil and Gas Regulatory Authority (OGRA) has proposed slashing petrol, and increasing diesel prices due to existing tax rates.
According to reports, the authority has calculated and proposed a two percent increase in diesel prices. It has moved a summary with calculations of petroleum prices on the basis of existing rates of the general sales tax (GST) and petroleum demand.
The Ministry of Finance is expected to announce a detailed list of prices of petroleum products based on the import parity (the price that a purchaser pays or can expect to pay for the imported goods).
OGRA says about Rs2.47 per litre of High-Speed Diesel (HSD) and Rs1.10 per litre in Light Diesel Oil (LDO) should be increased.
On the other hand, the regulatory has calculated six paisas and 66 paisas per litre reduction in the price of petrol and kerosene oil respectively.
The rate of HSD has been calculated at Rs129.73 per litre instead of Rs127.26, showing an increase of 1.9pc. In addition, light diesel oil (LDO) has been worked out at Rs85.61 per litre instead of the existing rate of Rs84.51, showing an increase of 1.3pc.
On the contrary, petrol price has been proposed to go down to Rs116.54 per litre from the existing rate of Rs116.60, down 0.1pc.
The ex-depot price of kerosene has been proposed to be reduced by 0.7pc to Rs98.79 per litre from the existing rate of Rs99.45 per litre.
The government has already increased GST on all petroleum products by a standard rate of 17pc across the board to generate additional revenues.