Increase in oil prices likely from May 1

ISLAMABAD : The government is likely to increase oil prices by Rs 3.50 per litre, effective from May 1, on the back of hike in international oil prices, Business Recorder has learnt.

According to sources, the Oil and Gas Regulatory Authority (Ogra) in its working has estimated increase in oil prices from Rs 1.50 to Rs 3.50 per litre due to increase in international oil prices.The average price of crude oil in Arab Gulf

Oil Prices May 1 2010

market stands at $80 per barrel against $77 per barrel in the end of March. The government had increased a maximum price of petroleum products up to Rs 3.50 per litre in line with the global oil prices effective from April 1 for the current month. The price of petrol was increased by Rs 2.57 per liter, HOBC by Rs 1.50 per liter, kerosene by Rs 3.31, light diesel oil by Rs 2.73, HSD by Rs 3.50, JP-1 (local) by Rs 3.29, JP-4 by Rs 3.41 and JP-8 by Rs 3.30 per liter.Sources said that increase in domestic oil prices would also result in more revenue collection as the amount of general sales tax (GST) would jump up. Due to increase in oil prices from April 1, GST on petrol was increased from Rs 9.73 to Rs 10.09, kerosene oil from Rs 8.84 to Rs 8.94 and on HSD from Rs 9.64 to Rs 10.12.After likely increase in oil price, the government will continue collecting petroleum levy (PL) on the sale of petroleum products through retail outlets as Rs 10 per litre on petrol, Rs 14 per litre on HOBC, Rs 6 per litre on kerosene oil and Rs 3 per litre on light diesel oil (LDO).Government has estimated Rs 122 billion revenue on account of PL collection during the current financial year 2010-11.
The current prices of petroleum products are as follows: petrol at Rs 73.14 per litre, HOBC at Rs 87.56 per litre, kerosene at Rs 64.81, light diesel oil at Rs 62.20, HSD at Rs 73.39, JP-1 (local) at Rs 54.54, JP-4 at Rs 53.10 and JP-8 at Rs 54.26 per litre.

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