Islamabad: The Oil and Gas Regulatory Authority (Ogra) asked the government on Monday to make adjustments in sales tax and petroleum levy to maintain price stability during Ramazan.
In a summary sent to the ministries of petroleum and finance, Ogra said international prices of all oil products, except high speed diesel (HSD), had increased in June.
Based on existing tax rates and PSO purchases from the international market, Ogra has worked out an increase of Rs4.26 per litre in the ex-depot price of petrol to Rs82.05 from Rs77.79 for July.
It also calls for a reduction of 60 paisa per litre in ex-depot price of HSD to Rs86.52 per litre from Rs87.12.
The ex-depot price of kerosene has been recommended to be increased by 67 paisa per litre to Rs65.61.
Ogra has calculated the price of high octane blending component at Rs91.11 per litre with an increase of Rs7.30. It calls for a reduction by eight paisa in the ex-depot price of light diesel oil to Rs64.76 per litre.
An Ogra official said the government had been advised to keep the prices unchanged by making adjustments in general sales tax and petroleum levy because historically transporters and traders take undue advantage of increases in petroleum products to jack up their profits in Ramazan, particularly ahead of Eidul Fitr.
He said the government would have to take a political decision on oil prices because a ‘no-change’ stance would not have a significant revenue impact for a month.
