KARACHI - The prices of petroleum products are expected to be raised in August in the backdrop of fresh spree of depreciation of rupee value against the US dollars, sources told The Nation. It is worth mentioning that the steep increase in the value of dollar has surfaced after the decision of State Bank of Pakistan (SBP), directing the government to make payments of oil import from the local market. This is in the context of keeping the foreign reserves intact. This decision of SBP has devalued rupee against dollar, as for the payments, the importers were buying dollars from inter-bank and open markets. The Chairman KATI and All Pakistan Lubricant Manufacturers Association, Mian Zahid Hussain, said that the dollar will hit the mark of Rs 87 or so, this will definitely increase the price of POL products and the POL prices will increase by Rs 2 to Rs 3 per litre. The prices of crude oil have been witnessing surge in international market, now it is $66 per barrel, as the economies of the world get pace for recovery, these prices will further surge up. The local raise in the value of dollar will raise the prices of POL products, as the rupee will witness decline in value. We should keep in mind that during the time when the prices of POL products went down significantly, from $140 per barrel to $35 per barrel, the local market did not witness any significant decline in POL products. The reason at that time was the same as rupee had shed its value by 35pc against dollar, he added. The government wants to transfer the burden of budget deficit to the general public. This can only give rise to the inflation in the local markets, directly affecting the general public, he added. The increasing demand of POL products will also affect its prices in local market. The overdependence on furnace oil for electricity generation has given rise to the prices of FO in local market. In this entire situation, the decision of 10pc use of ethanol fuel will benefit and support to some extend to trim the import bill of POL products. If the import bill was $10 billion yearly, we can save $1 billion yearly by using ethanol fuel, he concluded.