The State Trading Corporation issued a statement on Wednesday after the Petroleum Pricing Committee meeting. The new prices include Rs 2 announced for the purchase of vaccines and VAT. Petrol which was selling at Rs 48.40 will now sell at Rs 50.70 and diesel will go up from Rs 35 to Rs 37.30 per liter.
The Petroleum Pricing Committee (PPC) met on Wednesday 30 June 2021 and after verification of the computation of the retail prices of Mogas and Gas Oil, as provided for under Regulation 8 of the Consumer Protection (Control of Price of Petroleum Products) Regulations 2011 (as amended), approved that the retail prices of Mogas and Gas Oil be increased as per Regulation 5 (3), as shown below:
The Committee met to implement the budgetary measure to include an additional contribution of Rs2.00 per litre for Mogas and Gas Oil with effect from 1 July 2021 to finance the cost of COVID-19 vaccines as announced in the Budget Speech 2021-2022. The Committee also took note of the evolution of world prices of Mogas and Gas Oil, which have been on an upward trend since the past months as well as the status of the Price Stabilisation Account.
Mogas (L’Essence)
Taking into consideration the new contribution of Rs2.00 per litre and based on the new Reference Price of US$678.96 per metric ton for Mogas, that is, the actual prices for April to June 2021 and the future prices for July to September 2021 at an exchange rate of Rs43.00/US$, the retail price of Mogas should have been increased by Rs9.75 per litre or by 20.14%. However, following amendments made in the Regulations as decided by Government, the increase in the retail price of Mogas has been limited to Rs2.00 plus VAT and any shortfall will be funded from the Price Stabilisation Account.
Gas Oil (Diesel)
With the new contribution of Rs2.00 per litre for Gas Oil, the new Reference Price of US$77.10 per barrel, that is the actual prices for April to June 2021 and the future prices for July to September 2021 and an exchange rate of Rs43.00/US$, the retail price results in an increase of Rs12.20 per litre or 34.86%. However, following amendments made in the Regulations as decided by Government, the increase in the retail price of Gas Oil has been limited to Rs2.00 plus VAT. Any shortfall will be financed through the Price Stabilisation Account.STC,
Here is a table from the STC that explains in detail the different taxes and monies collected by the government on gasoline and diesel prices: –
