ISLAMABAD: The prices of POL products are likely to be increased in the second half of February due to significant surge in oil price globally. Sources said that the Oil and Gas Regulatory Authority (Ogra) worked out the prices of POL products for the second half of February based at 17 percent GST and Rs30 per liter petroleum levy (PL).

Sources maintained that the regulator recommended an increase in the rates of petrol by Rs15 per litre. The recommended price of high speed diesel (HSD) is at Rs13.75 per litre. As per new guideline provided by the federal government, the Ogra computes the petroleum products price based at standard 17 percent GST and Rs30 per litre PL instead of last notified PL rate. The last notified PL on petrol was Rs21.04 per litre and levy of Rs22.11 per litre for HSD.

These two POL products generate most of the revenue. The summary has been sent to the Petroleum Division and the Finance Division for formal approval. The decision would be taken by the prime minister. In February of 2021, price of Brent crude so far this month is 59.36$ per barrel, while the price was 54.77$ per barrel in January of 2021.

Over last 12 months the price has risen 6.65 percent. Brent crude is extracted from the North Sea and is also known as London Brent, North Sea Oil, Brent Blend, and Brent petroleum. It is a light crude oil, slightly heavier than WTI, and sweet because of its low sulphur content and it is ideal for the refining of diesel fuel, gasoline. Pakistan imports 65 percent of total consumption of fuel.

Copyright Business Recorder, 2021