ISLAMABAD: Prices for petroleum may increase by up to 16% from June 1 due to fluctuations in global crude prices.
According to the sources in petroleum minister, the minister had received a summary form the Oil and Gas Regulatory Authority (Ogra) on Thursday that proposed a swell in oil prices in the wake of flux in global markets.
Prices of all related products, with the exception of kerosene oil, are deregulated and Ogra only surveys the prices. As said in the proposed summary, Ogra asked to raise the price of petrol by Rs6.19 per litre, high speed diesel by Rs7.91, high octane Rs13,25 per litre, light diesel oil Rs 7.62 and kerosene oil by Rs6.53 per litre.
However, as stated by petroleum officials, the regulatory authority has suggested to not pass on the increase in oil prices. They said that Ogra had advised absorbing the increase in petroleum duty.
On the other hand, the Ministry of Finance may turn down this suggestion as unchanged oil prices would cause the revenues of the country. The final move will be made by Prime Minister Nawaz Sharif.
In the light of the statements by officials, the government could still maintain oil prices unchanged before the federal budget to ward off criticism from political parties and people who will face various taxes in the upcoming budget.