Oil consumers are likely to face an increase of 2.30 rupees per liter in the price of high-speed diesel (HSD) by July 2019. However, they will be able to get some relief from the price of petrol.
The Oil and Gas Regulatory Authority (OGRA) recommended to the government to reduce the price of petrol by Rs. 0.77 per liter and to increase the price of Rs. 2.30 per liter of the HSD by July 2019.
High-speed diesel is widely used in the agriculture and transport sectors, and an expected increase in its price would have a direct inflationary impact on the masses. The rise in the price of diesel will increase the rate of inflation.
Ogra also proposed an increase of Rs 0.26 per liter of the price of light diesel oil (LDO). This product is used in the industry. If the proposed price increase is approved, its rate will increase to 88.88 rupees per liter from the existing 86.62 rupees per liter.
The regulator recommended a reduction of 2.94 rupees per liter in the price of kerosene oil. Kerosene oil is used for cooking in remote areas where liquefied petroleum gas (LPG) is not readily available.
In case, the advice is endorsed, the price of kerosene oil will come down to Rs95.52 from Rs98.46 per litre.
If the government approves the proposed increase in the HSD price, its rate will go up to Rs129.12 per litre from the current Rs126.82. On the other hand, if the price is slashed, petrol will cost Rs111.91 per litre compared to the current Rs112.68.
At present, the general sales tax stands at 13% on petrol, 13% on diesel, 17% on kerosene oil and 17% on LDO.
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27 September, 2019