Karachi: The government is likely to raise the prices of major petroleum products on account of an upward revision in the Gulf crude oil prices which has reached USD 112 per barrel from the previous USD 105 per barrel level.
According to Alfalah Securities, the price of Light Diesel Oil (LDO) is likely to be raised by PkR 3.5/litre, High Speed Diesel (HSD) by PkR 3/litre, Petrol price by PkR 0.80/litre and kerosene oil by PkR 4/litre. Previously, the government had reduced the prices of petroleum products by up to PkR 5.94/litre however, the price of High Speed Diesel remained unchanged at PkR 94.15/litre. An upward trend was also observed in the prices of West Texas Intermediate (WTI) Light Sweet Crude oil which has crossed USD100/barrel after four months while, the Brent Crude Oil is currently being sold at USD109/barrel. An expected increase in petroleum prices is likely to boost inflationary pressures into the economy as the prices of several commodities would rise significantly due to an increase in transportation cost.