The Oil and Gas Regulatory Authority (Ogra) recommended on Wednesday reduction in the prices of petrol and high speed diesel (HSD) for May.
In a summary sent to the government, Ogra, however, suggested an increase in the prices of kerosene, light diesel oil (LDO) and high octane blending component (HOBC).
Sources said the ministry of finance would like to maintain the existing petroleum prices to ensure price stability and earn higher revenues as a windfall in view of over 85 per cent share of petrol and diesel in the petroleum consumption. Ogra worked out the new ex-depot price for motor spirit (petrol) at Rs73.29 per litre with a reduction of Re1 because of its lower price in the international market. On April 1, the petrol price was increased by Rs4 per litre. The regulator also calculated HSD price for sale at depots at Rs82.55 per litre with a cut of Rs1.06. HSD price was also hiked by Rs3 per litre on April 1.
The ex-depot price of kerosene was recommended to be raised by Rs2.11 to Rs63.55 per litre, while LDO price was proposed to be increased by Rs3.38 to Rs61.32 per litre. Ogra suggested raising the HOBC price by Rs4.93 to Rs89.79 per litre. Over the past few months, the government has been changing the rate of general sales tax and petroleum levy to boost revenue collection as international prices maintained a slide. Apart from Rs6 to Rs14 per litre petroleum levy, the government is charging up to 32 per cent GST on all oil products. At present, the petroleum levy is at its maximum limit permissible under the law.