Petrol, diesel prices may shoot up by Rs 4-5 a litre in August

10:41 AM | 30 Jul, 2020
Petrol, diesel prices may shoot up by Rs 4-5 a litre in August
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ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) has proposed an increase of about Rs7-9 per litre in petrol and high-speed diesel (HSD) for August and about Rs6 per litre increase in kerosene and light diesel oil (LDO) rates.

However, according to Dawn newspaper, the government is expected to increase the price of petrol and HSD by Rs4-5 per litre by bringing down the rate of petroleum levy and allow about Rs6 per litre increase for kerosene and LDO.

The government was expected to finally increase the price of petrol and HSD by Rs4-5 per litre by bringing down the rate of petroleum levy and allow about Rs6 per litre increase for kerosene and LDO, the newspaper reported on Thursday while quoted sources as saying.

Currently, the government is now charging about Rs47 per litre taxes on petrol and HSD as the petroleum levy on both items is now set at a maximum permissible level of Rs30 per litre. The government has already increased the general sales tax (GST) on all petroleum products to a standard rate of 17pc across the board to generate additional revenues. Until January last year, the government was charging 0.5pc GST on LDO, 2pc on kerosene, 8pc on petrol and 13pc on HSD.

Besides the 17pc GST, the government has almost quadrupled the rate of petroleum levy on HSD and petrol to Rs30 per litre from Rs8 per litre in January last year. The levy on kerosene and LDO remains unchanged at Rs6 and Rs3 per litre respectively.