Following a massive reduction in international crude oil price, the government may reduce petroleum product prices by up to Rs 7.5 per litre for the month of September, it is learnt. According to sources privy to the fluctuations of the petroleum products prices in international market, average Arab Light crude price up to August 19 remained $50 per barrel against $56.57 per barrel as compared to the prices of past month, which shows a reduction of almost 12 percent.
The Oil and Gas Regulatory Authority (Ogra) on August 29 after calculating the fluctuations in international crude oil prices will send a summary to the Ministry of Petroleum and Ministry of Finance for revising the petroleum product prices. Keeping in view the current trend petrol price is likely to be reduced by Rs 6 litre, High Speed Diesel (HSD) by Rs 5.30 per litre, Light Speed Diesel (LDO) by 5 per litre, Kerosene Oil (KO) by Rs 4 per litre and High Octane Blending Component by Rs 7.50 per litre.
At present different petroleum products are being sold at the following prices: HOBC at Rs 82.78 per litre, petrol at Rs 76.76 per litre, HSD at Rs 85.05 per litre, LDO at Rs 56.59 per litre and KO Rs 60.11 per litre. According to sources, the government may pass on the partial impact of the reduction in petroleum product prices to the end consumers. On July 31, 2015 the government while turning down the recommendations of Oil and Gas Regulatory Authority (Ogra) partially reduced the prices of petroleum products.
The regulator recommended of slashing petrol price by Rs 2.69 per litre, HSD Rs 5.48 per litre, LDO by Rs 6.33 per litre, kerosene oil by Rs 6.33 per litre and HOBC Rs 1.02 per litre. However, the government approved partial cut in oil prices as petrol by Rs 1.03 per litre, HSDF Rs 2.06, kerosene oil Rs 4.83 and LDO Rs 4.92 per litre. The regulator had proposed cut of Rs 1.02 per litre in HOBC price which had been passed on to the elite class consumers.
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