The Oil and Gas Regulatory Authority (OGRA), on Wednesday recommended the government to increase the price of petroleum products between Rs 1.93 to Rs 8.62 per litre, effective from 1 July. According to a summary forwarded to the Ministry of Petroleum and Natural Resources, OGRA on the basis of international fluctuations in crude oil prices has recommended that the government increase petrol price by Rs 1.93 per litre.
Sources said that OGRA has suggested an increase of Rs 3.75 per litre in high Speed Diesel Oil price, increase of Rs 3.53 per litre in High-Octane Blending Component (HOBC) price, increase of Rs 5.38 per litre in Light Diesel Oil (LDO) price and increase of Rs 8.62 per litre in Kerosene oil price.
If the government passes the full impact of increase in international crude oil prices to local consumers than from 1 July petrol will be available at Rs 66.20 per litre, HSD at Rs 79.27 per litre, Kerosene at Rs 51.87 per litre, LDO at Rs 43.35 per litre and HOBC at Rs 76.21 per litre.
Sources said that the Ministry of Finance is likely not to pass the impact of petrol and HSD prices to the consumers due to arrival of Eid-ul-Fitar. While prices of other petroleum products are likely to be raised from 1 July. At present international crude oil prices are hovering in the range of $47 to $48 per barrel which according to some experts - at the end of 2016 may soar to $75 per barrel.
Petrol and high speed diesel are two major products which generate most revenues for the government. The average sale of HSD across the country stands at 600,000 tons per month, petrol at 400,000 tons, kerosene around 10,000 tons and HOBC 6,000 tons. Last month OGRA had recommended increase in the prices of different petroleum products, but the government declined to burden consumers with price increases.