ISLAMABAD - Oil and Gas Regulatory Authority has recommended up to Rs4.68 per litre decrease in the price of petroleum products for February while the federal government has increased the Petroleum Levy on the POL by 125 per cent.

In a summary to the Petroleum and Finance Division, OGRA recommended decrease in the prices of almost all the petroleum products. It recommended decrease in oil prices due to falling oil prices in the international market.

According to the summary, it was recommended by OGRA to reduce the price of petrol by Rs0.59 per litre, High Speed Diesel (HSD) by Rs4.68. Similarly OGRA has recommended a decrease of Rs1.92 per litre Kerosene oil and Rs0.92 per litre in Light Diesel Oil (LDO).

The reduction could be much bigger in case the entire impact of lower international prices would have been passed on to the consumers, a source told The Nation. I can say the HSD price could be reduced by Rs14 per litre but the government increased the PL by Rs10 per litre, the source said. Instead of passing on the benefits of low international oil prices to the consumers the government has increased the Petroleum Levy, said the source. Earlier Petroleum Levy on HSD was Rs8 per litre and Petrol Rs10 per litre but since January 1 the consumers are paying Rs18 per litre PL on HSD, Rs14 per litre on Petrol (Motor Gasoline), Rs6 on Kerosene oil and Rs3 on LDO.

The government also directed OGRA that while making its recommendation for POL prices should consider the new PL rate.

If the government accepts the OGRA’s recommendation then high speed diesel prices would go down to Rs102 per litre from existing Rs106.68 per litre; petrol to 90.38 per litre from current price of 90.97 per litre. Besides, Light Diesel Oil (LDO) price would come down to Rs76.20 per litre from current price of Rs75.28 per litre and kerosene oil will decrease to Rs81.6 from Rs 82.98 per litre.

For January, the OGRA had recommended a decrease of Rs15.9 litre(14.33) in HSD, Rs9.5 per litre (9.91 per cent) in Petrol, Light Diesel Oil (LDO) by Rs2.16 per litre and kerosene oil prices by 0.52 per litre.

The government has transferred only 26 per cent of the OGRA recommended relief on Diesel prices to the consumers. On Petrol around 51 per cent of the OGRA recommended relief was transferred to the consumers. Instead of providing full relief to the consumers, the government had increased GST and Petroleum Levy on Petrol and HSD. Currently, the government is charging 17 per cent GST on the POL products.

High Speed Diesel is being used in agriculture and transportation, kerosene oil is used in remote areas where LPG was not available for cooking purposes. The LDO is used in industry. The government will make a decision on OGRA’s recommendation today.