Islamabad: As global oil prices continue to fluctuate, domestic retail prices of petrol may go up by 2.8%, while other petroleum products may see as much as 15 % price cut.
Petroleum ministry sources said on Wednesday they have received a proposal from the Oil and Gas Regulatory Authority (Ogra) for increasing the retail price of petrol and decreasing the price of other products. Prime Minister Nawaz Sharif will take a final decision on the summary today (Thursday), they said.
The prices of all petroleum products except petrol have seen a major decline after the US administration lifted a 40-year-old ban on their export by American firms. However, Finance Minister Ishaq Dar resisted slashing the prices over the past several months, frequently proposing temporary tax hikes to keep the rates steady and increase government revenues.
However, given the sustained pressure on international oil prices, the government may decide that the opportunity to keep its revenues from oil taxes may be narrowing.
Over 25% of government revenues come from the energy sector, and much of that comes from oil. As oil prices began declining late last year, the government saw a precipitous drop in its revenues from the taxes on oil, resulting in the fiscal deficit becoming wider.
If Ogra’s proposal were to go through, petrol price may go up by Rs2.17 per litre to Rs78.43 per litre from the current Rs 76.26 per litre. High-speed diesel (HSD) price may decline by Rs5.93 per litre to Rs77.86 from Rs 83.79 per litre. Light diesel oil (LDO) price may drop by Rs8.29 per litre to Rs44.94 per litre from Rs53.23 per litre. The price of High-Octane Blended Component (HOBC) may decline by Rs4.33 to Rs76.31 from Rs80.64 and that of kerosene may decline by Rs7.29 to Rs48.25 from Rs56.17.
Read: Petrol prices increased
