ISLAMABAD: The government is expected to increase petroleum prices by eight per cent at the start of the New Year.
The increase in petroleum prices will be due to the increase in prices of petroleum products in the international market, says the Oil and Gas Regulatory Authority (Ogra) sources.
Petrol prices in the international market in the month of November stood at $90.43 per barrel and increased to $98.13 per barrel in December.
The prices of kerosene oil and high speed diesel have also increased by approximately five per cent this month.
Ogra will announce the new prices of petroleum products December 31.
Oil prices hit two-year high
Oil prices have traded close to recent two-year highs, as traders continued to absorb news that U-S crude reserves fell by more than double market expectations last week.
Brent North Sea crude for delivery in February rose eight cents to $93.73 per barrel after soaring on Wednesday to $93.94.
New York's main contract, light sweet crude for February, also gained 10 cents to reach $90.58, after touching a similar peak of $90.80 the previous day.
The market spiked even higher on Wednesday following news of plunging US crude reserves, as demand in the world's biggest oil-consuming nation rises.