ISLAMABAD: Oil prices in the country are likely to rise by up to 14.6% from June 1 owing to fluctuation in the global crude markets.
Sources in the petroleum ministry said that it had received a summary from the Oil and Gas Regulatory Authority (Ogra) on Monday, suggesting an increase in oil prices.
Following the rise, the effect will be felt in prices of petrol, high-speed diesel (HSD), light diesel oil (LDO), kerosene oil and high octane blending component (HOBC).
Petroleum price may go up from the existing Rs64.27 to Rs65.12, an increase of Re0.85 per litre.
According to petroleum ministry officials, the consumers of HSD, which is used mostly in the transport and agriculture sectors, may face a hike of Rs 6.69 per litre which would take the price up to Rs79.21 litre from the existing Rs72.52.
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The price of kerosene oil, used for cooking purposes in remote areas where liquefied petroleum gas is not readily available, could be increased from Rs43.25 to Rs47.22 with an increase of Rs3.97 per litre.
Similarly, LDO, mainly used for industrial purposes, may record an increase of Rs4.47 per litre, meaning the price will go up from Rs37.97 to Rs42.44.
The price of HOBC, mainly used in luxury cars, may show a hike of Rs2.18 per litre taking the price to Rs74.86 from Rs72.68 per litre.
Prices of all products, except kerosene oil, are deregulated and Ogra only monitors the prices.
The government had space to absorb impact of increase in oil prices by adjusting in taxes. However, the Ministry of Finance may oppose this proposal as unchanged oil prices would affect the country’s revenues.
A final decision in this regard will be taken by Prime Minister Nawaz Sharif.
Officials said the government could still keep oil prices unchanged before the federal budget to avoid criticism from political parties and people who will face different taxes in the budget.