ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Thursday intimated 3 to 10 per cent cutback in the prices of petroleum products from 1st August.
Although the summary was sent to the ministries of petroleum and finance recommending the reduction in prices, the government is expected to maintain the prices unchanged due to an increase in tax rates.
Ogra said that the international prices of oil products had fallen in July as a result of positive sentiment around Iran nuclear treaty. Keeping in mind the current tax rates and PSO purchases from international market, Ogra suggested a cutback of Rs2.69 per litre (3pc) in the ex-depot price of petrol for August to Rs75.10 from the current rate of Rs77.79 per litre.
According to a finance ministry official, the PM had kept the oil prices unchanged last month in spite of a revenue loss of around Rs2.5 billion to make sure price stability ahead of Eid ul Fitr.
He said that it would be justified if the government recoup the revenue loss in August to keep on the course to obtain revenue target established in the budget for current fiscal and that too without building extra load on consumers.
Further he said that rate of petroleum levy and general sales tax are likely to increase to keep oil prices at the current position but the ultimate move would be taken with the approval by the PM.