ISLAMABAD: Based on existing tax rates, the Oil and Gas Regulatory Authority (Ogra) on Monday worked out substantial increase in the prices of all the petroleum products effective from Feb 1 for the next 15 days.

In a summary sent to the government, Ogra recommended 6.11 per cent increase in the price of petrol, 5.55 per cent in high speed diesel (HSD), 38.63pc in kerosene, about 29pc in light diesel oil and more than 17pc in the price of high octane blending component (HOBC).

Ogra said it had calculated the prices on the basis of imports made by Pakistan State Oil (PSO) in the last fortnight and existing tax rates. Finance Minister Ishaq Dar is expected to announce the decision after consulting the prime minister on Tuesday. Given the political environment the government is expected to pass on a partial increase in petroleum prices, informed sources said.

An official said the Ministry of Petroleum and Ogra have been recommending increase in kerosene price for several months to minimise a huge price differential with petrol.

The price differential of about Rs25 per litre between the two key products was encouraging dishonest market operators to mix kerosene with petrol in the market instead of higher grade (92RON) being charged to consumers.

As such, the regulator recommended anincrease of Rs16.71 per litre in the price of kerosene to Rs59.96, up by 38.63pc from its existing rate of Rs43.25. Last fortnight too, Ogra had suggested Rs14.31 per litre increase in kerosene price but it was kept unchanged on claims to protect poor people.

On Monday, Ogra calculated an increase of Rs4.16 per litre in ex-depot price of petrol (92RON) to Rs72.20 per litre, up by 6.11pc f rom existing rate of 68.04 per litre.

Likewise, the regulator worked out an increase of Rs4.29 per litre in the ex-depot price of HSD at Rs81.51 per litre, up 5.5pc from current rate of Rs77.22. Similarly, Ogra recommended an increase in the ex-depot price of Rs12.53 per litre to Rs55.88, showing an increase of 28.9pc from Rs43.35.

On top of that, the regulator estimated an increase of Rs12.47 per litre in the price of HOBC to Rs85.15 per litre, up by 17.15pc from Rs72.68 per litre even though this product is of ficially declared as completely deregulated.

Petrol and HSD generate most of revenue for the government because of their massive and yet growing consumption. For example, HSD sales across the country is 800,000 tonnes per month against monthly consumption of around 700,000 tonnes of petrol. The sales of kerosene and LDO are generally less than 10,000 tonnes per month.