PM Imran rejects OGRA’s proposal for hike in POL prices
In a bid to provide relief to the masses, Prime Minister Imran Khan on Monday rejected a summary of Oil and Gas Regulatory Authority (Ogra), proposing an increase of Rs14.07 per litre in petrol price.
The Ogra had proposed an increase of Rs14.07 in petrol price, Rs13.61 in price of high-speed diesel, Rs10.79 in kerosene oil and Rs7.43 in light diesel’s price.
The hike was suggested in view of the global rise in the prices of petroleum products.
The prime minister rejected the regulator’s summary, keeping in view the public relief, the PM Office said in a statement.
The prime minister assured the people that the government would go to any extent to provide relief to them.
While adjusting the fuel price a fortnight ago, the government had claimed that despite the regulator proposing a big increase, the consumers were burdened with a nominal raise in the fuel prices.
Industry officials had told The Express Tribune that Ogra had worked out the increase in the prices of the products based on the budgeted rate of petroleum levy that stands at Rs30 per litre at present.
The government has imposed a petroleum levy of Rs21.04 per litre on petrol and Rs22.11 on high-speed diesel.
Moreover, the government had inserted a provision in the budget to charge the rate of petroleum levy by up to Rs30 per litre on the products.
In addition to the petroleum levy, the government is also charging 17% general sales tax (GST) on the petroleum products. Based on the GST and budgeted rate of petroleum levy, the regulator had worked out an increase of Rs14.75 per litre on diesel and Rs16 per litre increase on petrol.
During the last two-and-half months, the government had increased the price of petrol by Rs11.21 per litre, HSD (Rs14.64), kerosene (Rs14.90) and light diesel oil by Rs16.37 per litre since December 1, 2020.