After facing an increase in the price of petrol for the past several months, consumers are likely to get some relief as rates may now be reduced, with the changes due to come in effect from April 1.
The regulator has recommended in a summary to the Petroleum Division that the price of petrol be reduced by Rs5.26 per litre (6%), which would bring the rate down from the existing Rs88.07 to Rs82.81 per litre. Petrol is the primary fuel for vehicles and with the suspension of indigenous gas supply to CNG stations, especially in Punjab, its consumption has gone up.
However, other than petrol, the summary has recommended minor increases in the rates of other petroleum products for April. Consumers of high-speed diesel may face an increase of Rs0.65 (0.7%), which would takeits price to Rs99.10 per litre from the existing Rs98.45 per litre.
The price of kerosene may be increased from Rs76.46 to Rs76.59 per litre with an increase of Rs0.13 per litre (0.2%). Kerosene is used in remote areas for cooking purposes, where Liquefied Petroleum Gas (LPG) is not available.
Similarly, LDO, which is mainly used for industrial purposes, may witness a hike of Rs0.55 (0.8%), increasing from Rs65.30 to Rs65.85.
The Ministry of Energy (Petroleum Division) received the summary from the Oil and Gas Regulatory Authority (Ogra) on Friday that recommended revision in oil prices. Prices of all petroleum products, except for kerosene, are deregulated, with Ogra only monitoring the prices.
At present, two types of taxes are being charged from consumers — petroleum levy and general sales tax. The government is charging higher rate of general sales tax at 31% on high-speed diesel (HSD), which is widely used in agriculture and transport sectors, while 17% is being charged on other petroleum products. In addition, the government is charging Rs8 per litre petroleum levy on HSD, Rs10 per litre on petrol, Rs6 per litre on light diesel oil (LDO) and Rs3 per litre on kerosene oil.