The Oil and Gas Regulatory Authority (Ogra) has sent a summary to the Ministry of Finance for revision in oil prices. It recommended up to Rs7 per litre drop in the price of petrol and Rs5 in the price of high speed diesel (HSD) for the month of June 2020 in line with dip in global oil prices due to the virus-fuelled lockdowns.
The government is likely to pass on further benefit of reduction in the prices of petroleum products to consumers during the month of June.
However, the Ogra has proposed an increase in the price of high-speed diesel by Rs0.05 per litre from Rs80.10 to Rs80.15 per litre, which is mainly used in the transportation and agricultural sectors. The increase in high-speed diesel price will reduce the inflation rate – directly benefitting the public. With the start of the harvesting season, the demand for diesel had increased leading the government to remove the ban on its import.
According to the summary, the price of kerosene is expected to come down by Rs11.88 per litre while that of light-speed diesel (LSD) by Rs9.37 per litre.
After the reduction, per litre price of petrol will likely be Rs74.52, HDL Rs80.10, LDL Rs38.14 and kerosene Rs35.56.
The government charges 17% general sales tax (GST) on all petroleum products. Apart from that, it collects petroleum levy on the sale of these products.
At present, the government is charging Rs30 per litre petroleum levy on high-speed diesel, Rs23.76 per litre on petrol, Rs18.02 on kerosene oil and Rs11.18 per litre light diesel oil (LDO) in addition to 17% GST.
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