Petrol price likely to go up by Rs15, diesel by Rs18


There is a possibility of increase in the prices of petroleum products in the country, for the international price of crude oil has risen to $107 per barrel.
The Oil and Gas Regulatory Authority (Ogra) will send a summary, suggesting an increase in the prices of petroleum products, to the Finance Ministry tomorrow.
The price of petrol is likely to increase by Rs15 per litre and diesel by Rs18 per litre. It is learnt that the Ogra has prepared two proposals relating to the petroleum products prices.
First, the prices can be maintained by reducing the levy tax on petroleum products. Second, the prices can be increased by increasing the levy tax by Rs10 per litre. The effects of dealers’ margin can also be avoided by reducing levy tax.
Even according to the international prices, there is no need to increase the prices of petroleum products at local level. Increase in the prices of petrol and diesel is possible only by increasing taxes rate.
The Ministry of Finance will consider the proposals related to the prices of petroleum products. After consultation with the prime minister, the new prices are expected to be announced on July 31 next.