ISLAMABAD: The federal government may increase the prices of petroleum products based on the working paper forwarded by the Oil and Gas Regulatory Authority (Ogra), sources said.

The oil and gas regulator has recommended a hike in fuel prices from January 1-15, 2021 in line with the international global crude.

Ex-depot prices have been calculated on 17 percent general sale tax (GST) and the rate of petroleum levy (PL) notified for December 16-31, 2020.

According to the sources, the Ogra recommends petrol prices increase at Rs2.75 per liter, while high-speed diesel (HSD) may go up by Rs3.15 per litre.

All Oil Marketing Companies (OMCs) were directed to import diesel not less than Euro-V standard with effect from January 1st, 2021.

The PSO already started importing Euro-V HSD.

The Directorate General of Oil of the Petroleum Division notified specifications of Euro-V petrol of all three grades (RON 92, 95 & 97), and asked the OGRA, Hydrocarbon Development Institute of Pakistan (HDIP) and the OMCs to implement these specifications.

On Wednesday, the regulator has conveyed a summary to the Petroleum Division for revision in petrol prices for the first half of January.

A final statement in this regard will be issued by the Finance Division after consultation with Prime Minister Imran Khan.

Earlier on December 15, the federal government reduced PL rates on all petroleum products and increased the ex-refinery prices.

An increase of Rs3 per litre on petrol was announced, which now sell at Rs103.69 per litre.

Prices of HSD after Rs3 per litre increase is selling at Rs108.44 per liter, while other products such as kerosene oil witnessed Rs5 per litre increase.

Copyright Business Recorder, 2020