ISLAMABAD: The price of diesel is expected to fall by more than a rupee per litre later this month, but prices of almost all other petroleum products may go up slightly if the government maintains the petroleum levy at its current level.

Informed sources, however, said that in view of Ramazan, the government has been advised to reduce the petroleum levy to maintain the existing prices of petrol, kerosene and high octane blending component (HOBC).

They said there was a strong possibility the government might reduce the levy to materialise the required increase in prices.

Officials said the price of high speed diesel (HSD) might be reduced by Rs1.40 per litre because of a decline in the international market. The prices of all other products have slightly gone up in the international market, equivalent to 25 to 50 paisa per litre.

Last month, prices of all petroleum products were reduced. Since May when the government deregulated the pricing of petroleum product, prices are fixed by oil marketing companies, but the announcement is made by the Oil and Gas Regulatory Authority.

Ogra notifies only the kerosene price. Separately, the government now determines the amount of petroleum levy required to be recovered through petroleum product pricing and forwards it to Ogra for onward communication to marketing companies.

The crude oil prices have declined from about $111 per barrel to about $99 a barrel in the international market.