ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has proposed an increase in oil prices for January citing an uptrend on the global market.

A summary of Ogra’s calculations, which has also been forwarded to the Ministry of Petroleum, showed that prices of kerosene and diesel were increased the most.

The calculations are made by Orga for the next month on the average prices of products and the crude oil during the outgoing month.

“There is a traditional increase in prices of kerosene and both the diesel fuels during November and December due to high heating demands from most countries,” said an official of the petroleum ministry.

The highest price increase of Rs6.93 a litre has been observed in kerosene prices, which now stand at Rs50.18 a litre for January.

The price of high-speed diesel (HSD) has been increased by Rs3.94, to Rs79.16 a litre. HSD is the highest selling petroleum fuel in the country, as it is consumed by large generators and heavy vehicle engines.

The price of light diesel oil (LDO), used to run small engines and mills mostly operated in rural areas, has been increased by Rs3.48, to Rs46.82 a litre.

However, a nominal increase of 31 paise has been calculated by Ogra in petrol prices which have been raised to Rs66.58 a litre.

Similarly, increase ranging between Rs4 and Rs6 has been calculated in the prices of three main aviation fuel produced in the country, ie JP-1, JP-4 and JP-8.

However, a petroleum ministry official maintained that the recent increase in global oil prices was mainly due to a deal reached by Organisation of Petroleum Exporting Countries (Opec) and some non-Opec members to reduce their output. Though the deal is likely to start from Jan 1, its impact is already visible.

The price of Opec basket of fourteen crude oils rose to around $52 a barrel in December compared to around $43 a month earlier.

At the same time, the average price of US benchmark West Texas Intermediate crude oil was $54 and that of Brent crude was $56 a barrel in December.

Similarly, prices of petroleum fuel also rose in December. Officials estimate that oil prices would continue to rise in January under the impact of global deal to cut oil output.

Published in Dawn, December 30th, 2016

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.