Prices of petroleum products are likely to increase by massive Rs31 to Rs85 per litre from May 16 as OGRA has prepared a working paper of a new tariff for approval of the government.

According to the 24News HD TV channel, the Oil and Gas Regulatory Authority (OGRA) has proposed ending the subsidies on petroleum products in its working paper paving way for a 'monster' rise in the prices of petroleum products.

The authority has also given different proposals to increase petrol and diesel prices in phases. According to the first proposal, petrol should be increased to Rs31 per litre. In the second proposal, it has been recommended to increase the price of petrol from Rs45.14.

The sources in OGRA informed that the government is giving a subsidy of Rs29.60 per litre on petrol and from May 16, the amount of subsidy on petrol will go up to Rs45.14 per litre.

In the first proposal, it is recommended to increase the price of diesel by Rs50 per litre and in the second proposal, it is recommended to increase the price of diesel from Rs85.85 per litre.

The sources said at present, the subsidy on diesel is Rs73.4 per litre.

Anyhow, the final decision about increasing the petrol prices will be made in consultation with the Prime Minister tomorrow.