Petroleum product prices are likely to increase from February 16, with an initial working paper proposing hikes of up to Rs6.55 per litre. The final decision will be taken by the federal government after reviewing revenue requirements.

According to sources, an initial working paper on petroleum product prices has been prepared. The document proposes that petroleum products could become expensive by Rs4 to Rs6.50 per litre.

The summary is expected to be sent by the Oil and Gas Regulatory Authority (OGRA) to the petroleum ministry tomorrow. The finance ministry will then review the recommendations before a final decision is announced.

Petrol, diesel hike

Sources say the working paper proposes an increase of Rs4.39 per litre in petrol prices. High-speed diesel (HSD) is likely to see a larger jump, with a proposed increase of Rs5.40 per litre.

Diesel price adjustments are particularly significant, as they directly impact transport costs and inflation across multiple sectors.

The working paper also recommends a Rs4 per litre increase in kerosene oil prices. Light diesel oil (LDO) could witness the highest hike among the products, with a proposed increase of Rs6.55 per litre.

Also Read: Govt announces changes in petroleum prices

These increases, if approved, will come into effect from February 16.

Possibility of further increase

Sources cautioned that if the government decides to impose additional levies or taxes, prices may rise further beyond the proposed amounts.

The federal government is expected to take a decision keeping in view the country’s revenue requirements and broader fiscal considerations.

On Jan 31, the government had announced changes to the prices of petroleum products for the fortnight starting from February 1 (Sunday).

The Petroleum Division issued a notification for prices applicable for the next 15 days. According to the notification, the price of petrol was kept unchanged at Rs253.17 per litre.