The Oil and Gas Regulatory Authority (OGRA) has worked out an increase of up to Rs 16.71 per litre in the prices of petroleum products.
Sources disclosed to this scribe that the regulator has forwarded the summary of oil prices to the ministry of petroleum and natural resources and recommended an increase of up to 38.6%. However, the final decision will be taken by a cabinet chaired by Prime Minister Nawaz Sharif before the start of February. “The government will announce new petroleum, oil, and lubricant (POL) prices on Tuesday, which will be effective across the country from February 1,” sources said.
According to the sources, the price of kerosene oil (SKO) which is used for cooking purposes in remote areas where liquefied petroleum gas is not readily available, will rise from Rs 43.25 to Rs 59.96/litre with an increase of Rs16.71 (38.6%). Similarly, the consumers of high speed diesel (HSD) may face a hike of Rs 4.29/litre, which would take the price to Rs 81.51/litre from the existing Rs 77.22/litre.
Likewise, petrol prices are expected to go up from the existing Rs 68.04 to Rs 72.20 per litre, an increase of Rs4.16. Again, the price of light diesel oil (LDO), mainly used for industrial purposes, may record an increase of Rs12.53 per litre, from Rs43.34 to Rs55.87/litre.
The price of high octane blended component (HOBC), mainly used in luxury cars, will be announced by the company itself, the sources added.
It is expected that the federal government succumb to political pressure and not approve the price hikes OGRA has proposed. The government will, however, approve an increase in POL prices, as it has the capability to absorb the impact of the proposed increase in oil prices by adjusting tax rates on petroleum products.
