The prices of petroleum products are likely to reach an all-time high of Rs150 per litre with effect from January 16, oil marketing companies hinted at this possibility on Thursday, amid a hike in the rates of crude oil in the international market.

The government is expected to move up the price of petroleum products by Rs6 per litre or 3.4 percent.

The rate of petrol is expected to rise by Rs5.25 per litre and high speed diesel (HSD) by Rs5.75 per litre.

Likewise, the price of kerosene oil (SKO) will likely to go up by Rs5.50 per litre and light diesel oil (LDO) by Rs6 per litre.

The Oil and Gas Regulatory Authority (OGRA) will calculate the prices on the basis of current level of petroleum levy (PL) and general sale tax (GST).

Sources said that exchange rate against US dollar and raise in price of Brent Oil by $1.7 per to $83.7 per barrel would force the government to increase the prices.

The government had already fulfilled its commitment to raise Rs4 per litre PL each month and in first half of January government imposed Rs4 per litre on all petroleum products.

The Ministry of Finance will make a final decision in this regard after consultations with Prime Minister Imran Khan and the new prices will be effective from January 16. The oil and gas regulator will send its recommendation on new prices of petroleum products today (Friday).

The story was originally published in Business Recorder on January 14, 2022.