Oil prices likely to significantly increase

The prices of all petroleum products may touch Rs11.5 per liter owing to higher international prices, sources said on Wednesday.

The Oil and Gas Regulatory Authority (OGRA) has sent a summary to the Petroleum Division in this regard. The final decision in this regard will be taken after consultation with Prime Minister Imran Khan.

Read more: Govt jacks up petrol price by Rs2 per litre

It has been proposed that the effects of rising prices of petroleum products in the global market should be extended to the local market as well.

Sources in the Petroleum Division said that an increase of Rs2.40 has been proposed for the high speed diesel (HSD). Additionally, kerosene prices will go up by Rs1.5, while a surge of Rs1.40 has been proposed for the light diesel.

Also read: Govt raises petrol price by Rs2.13

The new prices will come into effect from July 16 till July 31.

The potential increase in petroleum prices comes at a time when the consumption of petroleum products in the power sector has declined 43 per cent and the demand and supply gap between gas production and consumption is likely widen further in the next decade.