ISLAMABAD: The Oil and Gas Regulatory Authority has forwarded a summary to the government for increasing prices of petroleum products by 20 paisa to Rs2 per litre for November.

It has recommended an increase of 20 paisa per litre in the price of high speed diesel (HSD), 50 paisa for petrol, 75 paisa for kerosene oil, Rs107 for light diesel oil (LDO) and Rs2 per litre for HOBC.

The summary will be forwarded to the prime minister, but an official of the Ministry of Petroleum said under the current pricing mechanism the role of the ministry and the prime minister was a mere formality.

‘The impact of international oil prices is now being directly passed on to consumers,’ the official said.

Oil prices have surged above $80 a barrel in the international market and experts say that the upward trend is likely to persist in coming months.

The forward trade of light sweet crude for December delivery has gone up to $80.08, while oil price in the Gulf market on an average stood at $74 per barrel.

Officials of the petroleum ministry said that at the beginning of October, the average oil price was below $70 and the increase in price was because of the beginning of winter in Europe and North America.

After amendments to the pricing formula the impact of oil prices in international markets is now directly passed on to consumers as government taxes are fixed.

The government tax is Rs10 per litre on petrol, Rs14 per litre on HOBC, Rs6 per litre on kerosene oil and Rs3 per litre PL on light diesel oil (LDO).

This will be in addition to Rs8.50 per litre GST on petrol, Rs10.43 per litre on HOBC, Rs7.98 per litre on kerosene oil and Rs7.58 per litre on LDO.