The government is likely to pass on further benefit of reduction in prices of petroleum products in the international market to consumers during the month of June.
The Oil and Gas Regulatory Authority (Ogra) has proposed a reduction of Rs 7.06 per litre in the price of petrol for June 2020. However, it has proposed a slight increase of Rs 0.05 in the price of high-speed diesel (HSD) from Rs 80.10 to Rs 80.15 per litre, which is mainly used in transport and agriculture sectors.
The meagre increase in the HSD price may have no impact on the inflation rate, which will directly benefit the public. With the start of crop harvesting season, the demand for diesel has increased, prompting the government to lift the ban on imports.
Ogra has proposed that petrol prices should be slashed from Rs 81.58 to Rs 74.52 per litre for June 2020. The fuel is mainly used in cars and motorcycles. It has suggested a reduction of Rs 11.88 in the price of kerosene oil from Rs 47.44 to Rs 35.56 per litre. In the price of light diesel oil (LDO), a reduction of Rs 9.37 has been recommended from existing Rs 47.51 to Rs 38.14 per litre.
