ISLAMABAD: Days after the exit of the PTI government, the Canvas and Gas Regulatory Authority (Ogra) on Thursday suggested an unknown increase of over Rs120 per litre (over 83 per cent) in the prices of petroleum products with effect from April 16 to recover full imported cost, exchange rate loss and maximum duty rates.
Largely placed sources in Ogra and the Petroleum Division verified that the controller had presented two options to the government for price increase — the loftiest- ever in both cases — on the coming fortnightly review due on Friday ( moment).
Prime Minister Shehbaz Sharif must decide whether or not to lift a four-month price snap (until June 30) blazoned by his precursor, Imran Khan, on February 28.
Informed sources, still, told Dawn that the price snap would continue for the time being.
Ogra said both options had been worked out under the PTI government’s August 24, 2020, policy guideline. This needed computations on the base of being deals duty and petroleum tax rates at the time of fortnightly review as well as full duty rates admissible under the law.
The Ogra’s working paper, seen by Dawn, suggests that grounded on the being duty rates — which are zero — the prices of all products should go up in an Rs22-52 per litre band to charge breakeven prices without any element of subvention.
Under this option, the ex-depot price of high-speed diesel (HSD) has been worked out at Rs195.67 per litre against the being rate of Rs144.15, showing an increase of Rs51.52, or35.7 pc. The ex-depot price for petrol will rise by Rs21.60 (14.2 pc) to Rs171.46 per litre from Rs149.86.
The same formula suggests the kerosene price at Rs161.61 per litre against Rs125.56 at present, up Rs36.03 or28.7 pc. The ex-depot price of light diesel canvas (LDO) has been calculated at Rs157.20 per litre against Rs118.31 at present, showing an increase of Rs38.89, or32.9 pc.
The alternate price script is grounded on full duty rates, including 17pc GST on all products, and Rs30 per litre petroleum tax each on HSD and petrol, followed by Rs12 on kerosene and Rs10 on LDO — the maximum rates admissible under the Finance Bill.
In this case, Ogra has worked out the ex-depot price of HSD at Rs264.03 per litre against Rs144.15 at present, showing an increase of Rs119.88 or83.2 pc. Likewise, the price of petrol has been calculated at Rs235.16 per litre for the coming fortnight against Rs149.86 at present, over by Rs85.30 or57.4 pc.
The ex-depot price of kerosene, with full levies, has been worked out at Rs203.42 per litre against the being rate of Rs125.56, an increase of Rs77.86 or61.8 pc. The LDO price has been calculated at Rs195.62 per litre against Rs118.31 at present, an increase of Rs77.31 per litre or65.34 pc.
The PTI government had approved slightly over Rs31 billion for payment to canvas marketing companies as price discriminational claims for March, but an quantum of Rs34bn for the first fortnight of April has neither been approved nor allocated in the budget so far.
