ISLAMABAD: Despite a decline in prices in the international market, the price of petrol will be increased in the country by Rs2.17 per litre in January if the government approves a summary prepared by the Oil and Gas Regulatory Authority (Ogra).

The prices of all other petroleum fuels will be reduced if the summary is approved.

“The price of petrol is moving up because some cargoes arrived late in the month and their impact will be reflected in the pricing for February 2016,” an official of the petroleum ministry said.

But, he added, despite the recommendation made by Ogra the competent authorities might decide not to increase the price of petrol for next month.

The price calculations for the next month made by Ogra are based on the prices of petroleum products, both imported and local, up to the 27th of each month.

The official said a significant reduction of Rs7.92 per litre was expected in the price of high speed diesel — the largest selling petroleum product in the country, used in buses, trucks and generators.

The maximum reduction of Rs8.29 per litre has been proposed in the price of light diesel oil which is used in some farm machines and to operate mills and pumps.

A price reduction of Rs4.33 per litre has been suggested for high octane blending component and Rs7.92 for kerosene.

The Ogra summary contains good news for the aviation sector, including the air force, as it has suggested reduction in the prices of all aircraft fuels for January.

Therefore, the prices of all the three widely used aviation fuels in the country may decline by 12 to 17 per cent.

JP-4 has almost vanished from world markets but the local refineries continue to blend it because it is used in some small aircraft of the Pakistan Air Force.

Its price is likely to be reduced by Rs5.3 per litre.

The price of JP-8, which is consumed by fighter aircraft, is set to be reduced by Rs7.6 per litre. The most widely used aviation fuel is JP-1 which is used by commercial airliners. Ogra has calculated a reduction in JP-1 price of Rs7.62 per litre.

The petroleum ministry will forward the summary to the finance ministry.

Then the summary along with a note from the finance ministry will be sent to the prime minister for a final decision.

Published in Dawn, December 31st, 2015