Islamabad – While offering a sour welcome to 2021, the Federal government has increased the prices of Petrol and HSD by Rs 2.32 and 1.80 per litre respectively, while LPG price has been jacked up by Rs 15.94 per Kg for the first month of New Year.
The government has announced an increase of up to Rs 3.95 per litre in the prices of petroleum products coming into effect from January 1st 2021, for next fortnightly, said a notification issued here Thursday.
As per the notification of the Finance Division the prices of almost all the petroleum products have been increased for the first fortnight of January.
The price of Motor Spirit (Petrol) has been increased by Rs 2.31 per litre, High Speed Diesel by Rs 1.80 per litre, Kerosene oil by Rs 3.36 per litre and Light Diesel Oil (LDO) by Rs 3.95 per litre.
After the increase the new prices of petrol will be Rs 106 per litre increased from the current Rs 103.69 per litre, HSD will go upto Rs 110.24 per litre from the existing Rs 108.44 per litre, Kerosene to Rs 73.65 per litre from Rs 70.29 per litre and Light Diesel Oil(LDO) to Rs 71.81 per litre from the existing Rs 67.86 per litre.
The Prime Minister office first shared a statement regarding price increase claiming that Ogra had proposed an increase of Rs 10.68 per litre on in petrol, Rs 8.37 per litre in HSD, Kerosene Rs 10.68 per litre and Rs 14.87 per litre in the price of LDO.
However, to provide relief to the consumers minimum increase has been made in the prices of petroleum products.
Interestingly Ogra recommendation was based on the petroleum levy of Rs 30 per litre which was far higher than the existing Petroleum Levy.
The existing Petroleum Levy on Petrol( 16 Dec to 31 Dec) is Rs Rs 24.13 per litre, HSD Rs 25.10 per litre, and Rs 6.10 per litre on Kerosene Oil.
Now the question is why Ogra had recommended an increase of Rs 10.68 per litre in Petrol prices on the basis of Rs 30 petroleum levy? It could have simply recommended an increase of Rs 4.81 per litre on the basis of Rs 24.13 per litre existing Petroleum Levy. Similar is the case of HSD, where Ogra had recommended an increase of Rs 8.37 per litre increase on the basis of Rs 30 per litre petroleum levy. Here too the regulator had the option of recommending on the basis of existing PL and the proposed increased would be Rs 3.47 per litre.Same is the case of Kerosen Oil where the petroleum levy was just Rs 6 per litre but the regulator had made the recommendation on the basis of Rs 30 petroleum levy.
The government is charging 17 per cent General Sales Tax (GST) on petroleum products.
Meanwhile a notification issued by the Ogra said that the price of LPG has been increased by Rs 15.94 per Kg for the month of January 2021. After the increase the price of 11.8 Kg domestic cylinder increased by Rs 188 while the commercial cylinder will go up by Rs 722.
The new rates of LPG with increased prices will be Rs.148 per KG instead of existing Rs.132. The domestic 11.8 Kg cylinder will go up to Rs.1,741 from the existing Rs.1,553 while commercial cylinder will go up to Rs.6,697 from the current Rs.5,976.
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