ISLAMABAD: Prices of petroleum products are expected to increase by up to Rs5 per litre across the country starting from January 1, 2014, DawnNews reported.

The government is expected announce the new prices of the petroleum products on Dec 31, 2013, sources said.

According to the sources, an increase in petrol prices has been recorded in the Middle East oil market, therefore precipitating a likely corresponding increase in the fuel prices in Pakistan.

The price of petrol is projected to increase by Rs3.30 per litre. The prices of hi-speed diesel and hi-octane are projected to increase by Rs4.70 and Rs5 per litre respectively. Prices of light diesel and kerosene are expected to rise by Rs3.75 and Rs3.25 per litre respectively.

If the government decides to increase the fuel prices in accordance with the current trend in the global oil market, new petrol prices in Pakistan will exceed Rs117 per litre, while the new prices for hi-speed diesel and hi-octane would top Rs121 and Rs150 per litre.

The Oil and Gas Regulation Authority (Ogra) would be assessing the delivery expenses on December 26 and submit a summary to the government on December 27.

Furthermore, Prime Minister Nawaz Sharif has directed the Ministry of Finance to prepare a summary on whether the petroleum prices would be increased or would there be a decrease in the petroleum levy.

Sources said the new prices of petroleum products would be announced after the prime minister has approved the summary submitted by the finance ministry.