ISLAMABAD: Federal government may revise prices of petroleum products upward from December 1st following surge in the price of crude globally.

The demand in crude oil is increasing on the news of successful coronavirus vaccine. The average crude oil price increased by 0.24 percent internationally in three months (September-November 2020), market experts said.

Oil and Gas Regulatory Authority (OGRA) worked out the petroleum prices based at 17 percent general sale tax (GST) and petroleum levy notified in November 16.

Sources said that the petrol price is likely to increase by Rs2.50 per litre while diesel price is likely to go up by Rs2.75 per litre. The regulator sent a summary to the Petroleum Division with its recommendation on the new prices for the next 15 days. The regulator is not sharing the recommended monthly prices of POL with media for last few months for unknown reasons.

The federal government may pass half of the impact of petrol and diesel prices by decreasing the petroleum levy. At present, the government is charging Rs30 per litre levy on petrol and Rs30 per litre levy on diesel.

These two products are the major source of revenue for the government.

The Finance Ministry will make the final decision on the prices of petroleum products in consultation with Prime Minister Imran Khan today (Monday)

Copyright Business Recorder, 2020