ISLAMABAD - Inflation-hit masses are going to face the 'fuel bomb' ahead of Ramazan as a gift from the Pakistan Muslin League-Nawaz government because a raise of up to Rs3.66/litre is expected in the prices of petroleum products from July 1.

Following fluctuations in global oil prices and increase in rate of general sales tax (GST), Oil and Gas Regulatory Authority (Ogra) has dispatched oil prices summary to the Petroleum Ministry, recommending up to Rs3.66/litre hike in the prices of petroleum products, sources said on Friday.

Sources, citing Ogra's monthly oil prices summary, said that hike was on the cards as the regulator while recommending oil prices of next month had included 17 percent GST, which would be applicable across the country from July 1 after the approval of the Finance Ministry. According to the summary, per litre price of petrol will go up by Rs2.66, high-speed diesel (HSD) by Rs3.66, high octane blended component (HOBC) by Rs2.36, light diesel oil (LDO) by Rs3.04 and kerosene oil will be raised by Rs2.50. To provide relief to consumers, Ogra had also asked the petroleum and finance ministries to adjust the rate of Petroleum Levy on petroleum products instead of increasing prices.

"If Ogra's proposed fuel prices are approved, hike in the prices of POL products, essential commodities, power tariff -- due to monthly fuel price adjustment surcharge – will intensify the miseries of common man, who is already bearing brunt of hours long power outages and sky rocketing inflation, an official at the Finance Ministry said.”

If approved by the prime minister, the new POL prices will be: petrol Rs102.43/litre, diesel Rs108.26/litre, LDO Rs92.17/litre, HOBC Rs126.77/litre and kerosene oil at Rs96.29/litre.