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ISLAMABAD: The price of petrol is expected to increase by Rs5.25 per litre from October 1.
According to reports, Oil and Gas Regulatory Authority (OGRA) has sent a proposal to the Finance Division recommending an increase in the price of petrol and diesel.
The price of diesel is expected to increase by Rs3.5 per litre. The final decision will be taken by the Ministry of Finance after consultations with the prime minister.
The change in petroleum prices will rely on adjustments on petroleum levy and GST to be added to the petrol and diesel prices. There is currently a Rs5.62 per litre petroleum levy imposed on petrol and Rs5.14 per litre on diesel.
The government on September 15 had announced Rs5 increase in the price of petrol “owing to the fluctuations in petroleum prices in the international market and exchange rate variation”.
Petrol, with the Rs5 increase, now costs Rs123.30 per litre, whereas high-speed diesel, with an increase of Rs5.01, will be sold at Rs120.04 per litre.
Global oil prices slip
Meanwhile, oil prices slipped after US crude inventories rose by more than anticipated, even as OPEC plans to maintain its deliberate approach to adding supply to the market.
US crude stockpiles rose by 4.6 million barrels last week, exceeding expectations, boosted by a rebound in output as offshore facilities shut in by two US.Gulf hurricanes resumed activity.
Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. US.oil prices ended down 46 cents, or 0.6%, to $74.83 a barrel.
The market was also pressured by strength in the US dollar, which hit a one-year high against a basket of other major currencies. Since oil is transacted in dollars, strength in the US currency makes the commodity more expensive worldwide.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
US oil, gasoline and distillate stockpiles rose last week, according to the US Energy Department. US.output rose to 11.1 million barrels per day, roughly in line with where production was before Hurricane Ida hit about a month ago.
Production in the United States has failed to recapture the levels seen at the end of 2019, when output rose to almost 13 million bpd. Shale output has been slow to rebound, tightening global supply as OPEC has been reluctant to raise its quotas.
