Karachi: The government is likely to raise the prices of petroleum products in the range of PKR 1.78 to PKR 7.30 per litre on account of a rising trend observed in the Arabian Light crude prices which has reached to USD 120 per barrel during February 2012, touching its 11 months high.
According to Alfalah Securities Limited, the price of HOBC is likely to go up by PKR 7.30 per litre, Petrol by PKR 3.60 per litre, Diesel by PKR 1.78 per litre, Light Speed Diesel by PKR 2.68 per litre and kerosene oil by PKR 2.69 per litre.
An increase in petroleum prices would heat up inflation in the economy as POL products are widely used in the production of electricity and consumed as a fuel. Moreover, an increase in POL prices would result in reducing the popularity of the present government and in order to avoid such un-populist measures the Finance ministry is also considering maintaining petroleum prices at current levels by absorbing the price hike impact in Petroleum Levy as consumers are already overburdened due to high PL and sales tax charges on POL products. The government has been able to collect PKR 9 billion through Petroleum Levy during the1HFY12.