ISLAMABAD: The federal government may increase the prices of petroleum products by up to Rs 12.33 per litre owing to global hike in crude oil prices and inclusion of petroleum levy (PL) and general sales tax (GST) with effect from February 16, market sources said.

After calculating the ex-depot prices of petroleum products based at last notified PL and GST for second half of February, the Oil and Gas Regulatory Authority (Ogra) will send a summary to the Petroleum Division on Tuesday (today) for final approval. The market sources said that the price of petrol will go up from Rs 147.83 to Rs 160.16 per litre, in case, the government opts to pass on full impact of crude oil hike in the international market. There is also surge in the price of high speed diesel (HSD) by Rs 10.02 per litre.

In case, the government decides to pass on full impact, the price will go up from Rs 144.62 to Rs 154.64 per litre.

The price of kerosene oil (KERO) will also increase by Rs 10.08 per litre, from Rs 116.48 to Rs 126.56 per litre and LDO will go up from Rs 114.54 to Rs 123.97 per litre or Rs 9.43 per litre. The prices of petroleum products are expected to witness an increase in the next half of the ongoing month as crude oil rates have gone up in the international market, sources said on Saturday.

POL products’ prices increased

On February 1, 2022, the government had decided to maintain the prices of petroleum products for the first 15 days of February. Special Assistant to the Prime Minister on Political Communication Shahbaz Gill had tweeted at the time: “The prime minister did not approve the summary of increasing petrol price by Rs 11 and diesel by Rs 14”. Few days back, Finance Minister Shaukat Tarin indicated an increase in petroleum prices in the coming days, adding that the government could not lower petroleum product prices artificially.

Copyright Business Recorder, 2022