Prices Of Kerosene Oil And Light Diesel Oil Likely To Go Up Further.

ISLAMABAD -- The rates of kerosene oil and light diesel oil are likely to go up further as Petroleum Division has proposed deregulation of prices and application of petroleum levy and general sales tax (GST) equivalent to high speed diesel (HSD) on both the products.

The Petroleum Division has recommended complete deregulation of the prices of kerosene oil and light diesel oil, allowing oil marketing companies (OMCs) to freely fix consumer prices of both the petroleum products at their own, said a summary of the Petroleum Division available with The Nation. Economic Coordination Committee (ECC) of the Cabinet, while considering a summary submitted by the Petroleum Division under title 'Pricing of Petroleum Products' in its meeting held on 31st July, 2022 directed the Petroleum Division to submit a summary to deregulate the pricing of kerosene oil and light diesel oil in consultation with relevant stakeholders.

In a summary, prepared by the Petroleum Division, to be presented to the Economic Coordination Committee (ECC) of the Cabinet, the Petroleum Division has recommended that pricing of SKO and LDO may be deregulated subject to the framework, that no imports of SKO and LD0 will be allowed in the country without proper policy and permission of the government or relevant authority, after deregulation; SKO/LDO will not be covered under the Inland Freight Equalization Margin (IFEM). Transportation charges may vary from location to location and all the inland transportation cost will be directly payable by the consumer on actual cost basis. Oil marketing companies (OMCs) may freely fix consumer prices of SKO/LDO at their own. However, General Sales Tax (GST) and Petroleum Levy equivalent to HSD will be applicable, as per rates notified by the government from time to time. It has been further proposed that refineries and oil marketing companies (OMCs) shall be bound to market SKO/LDO conforming strictly to the specifications approved/notified by the government from time to time. Oil and Gas Regulatory Authority (OGRA) shall be the regulator to look after the interests of all concerned and monitor the marketing of the two products, the summary proposed.

The Petroleum Division has proposed that general sales tax (GST) and petroleum levy equivalent to high speed diesel (HSD) will be applicable on SKO and LDO, as per rates notified by the government from time to time. As...