An official said the government had not yet made up its mind to reduce petroleum levy by Rs4, or 50 per cent, on diesel as recommended by the petroleum ministry.

ISLAMABAD: Prices of petroleum products are likely to be increased by Rs3-6 per litre on Jan 31 in line with a rising trend in the international market.

An official said here on Friday that tension between the United States and Iran had led to heavy buying by China and Japan for enhancing stocks, resulting in a high demand and increase in prices.

Oil prices in the Middle East, from where Pakistan gets major supplies, had already risen to $112 per barrel, he said.

In addition, the rupee has depreciated by about Rs1.5 against the dollar in recent weeks.

The official said that based on the Middle East prices during the current month, the petrol price here was estimated to go up by about Rs5.5 per litre. The current price is Rs89.55.

High speed diesel is likely to cross the Rs100 mark to Rs102, up Rs3 per litre from the existing rate of Rs99.

The official said the government had not yet made up its mind to reduce petroleum levy by Rs4, or 50 per cent, on diesel as recommended by the petroleum ministry.

If the proposal is accepted, the price may remain unchanged.

The price of high octane blending component (HOBC) now available at Rs112 per litre is expected to go up to about Rs118.

The prices of light diesel oil and kerosene are also expected to increase by about Rs3.5 and Rs3.