In the next two days, there is a likelihood of an increase in petroleum product prices, as the Oil and Gas Regulatory Authority (OGRA) is set to send a summary regarding the price adjustments.

The prices of petroleum products could rise by up to Rs4 per litre, according to sources within the Petroleum Division said. There is also an expectation of an increase in diesel prices, which may see a rise of more than Rs4 per litre. There is a possibility of a Re1 per litre increase in kerosene oil prices.

The announcement regarding the changes in petroleum prices is expected on December 31. The finance minister would announce the new prices in consultation with the prime minister, they added.

Oil prices settled more than 1% higher on Friday and recorded a weekly gain in low trading volume ahead of year-end, buoyed by a larger-than-expected drawdown from US crude inventories last week, Reuters reported.

Brent crude futures rose 91 cents, or 1.2%, to settle at $74.17 per barrel. US West Texas Intermediate crude futures rose 98 cents, or 1.4%, to $70.60 per barrel.

On a weekly basis, both Brent and WTI crude gained about 1.4%.

US crude oil inventories fell by 4.2 million barrels in the week ended December 20 as refiners ramped up activity and the holiday season boosted fuel demand, data from the US Energy Information Administration showed on Friday.