ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) has recommended an increase of Rs14.37 per litre in the price of petrol and Rs4.89 per litre in the price of High Speed Diesel for the month of May, it is learnt reliably on Monday.

In a summary to the Petroleum and Finance Division, Oil and Gas Regulatory Authority has recommended hike in the prices of almost all the petroleum products.

OGRA has recommended an increase of Rs4.89 per litre (4.16 per cent) in the price of High Speed Diesel (HSD), Rs14.37 per litre (12.68 per cent) in the price of petrol, Rs7.46 per litre (8.35 per cent) in kerosene oil and Rs6.40 per litre (7.95 per cent) in Light Diesel Oil.

The Ogra has recommended an increase in oil prices mainly due to jump in the oil prices in international market, rupee depreciation against the dollar and the introduction of new Petroleum Levy rates, said the source. The source said the Ogra recommendations are based on the new Petroleum Levy imposed by the government.

The impact of increased international oil prices is 11 per cent in the case of petrol rates, however, the impact prices were not applied to the HSD price as there was enough stock of the commodity and therefore was not applied there.

Rs14.37 per litre raise in petrol prices recomended

Besides the rupee depreciation impact has also been counted there in HSD and petrol prices while the remaining increase was due to increase in crude oil prices. On April 29, the crude oil price was around $63.06 per barrel which is around 3 dollars less than March 28.

The Ogra was directed by the government to make their recommendations regarding POL prices on the basis of new petroleum levy rates which were increased by 175 per cent by the present government.

If the Ogra recommendations would have been based on the petroleum levy of December level then the HSD prices would have remained unchanged, said the source. However the prices of petrol would have gone up a bit, said the source.

Earlier the petroleum levy on HSD was Rs8 per litre and on petrol Rs10 per litre but from January 1st the government has enhanced the Levy. Since February 1st, the consumers are paying Rs22 per litre PL on HSD, Rs18 per litre on petrol (motor gasoline), Rs6 on kerosene oil and Rs3 on LDO.

If the government approved the Ogra’s recommendation then the price of petrol will go up to 113.26 per litre from the existing price of Rs98.89 per litre, HSD from the existing 117.43 per litre to Rs122.32 per litre, kerosene oil from 89.31 per litre to Rs96.77 per litre and LDO from Rs 80.54 per litre to Rs86.94 per litre.

For April Ogra had recommended an increase of Rs 11.17 per litre (10.02 per cent) in the price of high speed diesel (HSD), Rs11.92 per litre (12.83 per cent) in the price of petrol, Rs 6.65 per litre (7.70 per cent) in kerosene oil and Rs6.49 per litre (8.37 per cent) in light diesel oil. However, the Ogra summary was partially approved by the government.

The government will announce the new prices of the Petroleum

products today.