The government is to reduce prices of petrol and Compressed Natural Gas (CNG) by Rs 2.09 per litre and Rs 1.75 per kg, respectively, effective from October 15. According to a summary prepared by Oil Marketing Companies (OMCs) sent to the Ministry of Petroleum on the basis of prevailing international oil prices, prices of all the other petroleum products, including High Speed Diesel (HSD), Light Diesel Oil (LDO), Kerosene Oil and High Octane Blending Component (HOBC) would go up.
Following a reduction in petrol prices, the price of Compressed Natural Gas (CNG) would also reduce by up to Rs 1.75 per kg due to its link with 60 percent parity of petrol price, an official of the Petroleum Ministry says. However, consumers of other important Petroleum, Oil and Lubricant (POL) products are not expected to have relief as the price of kerosene oil price is expected to increase by Rs 1.92 per litre, High Speed Diesel by Rs 3.10 per litre, Light Diesel Oil (LDO) by Rs 1.23 per litre and High Octane Blending Component (HOBC) by Rs 3 per litre.
HSD is used by the masses in transport and agriculture sectors. Therefore, an increase in its price may directly impact the lives of many by increasing inflation along with transportation cost, besides further putting burden on the farming community.
Kerosene oil is used in remote areas for cooking where Liquefied Petroleum Gas (LPG) is not available; especially in the northern areas of the country an increase in its price always create problems for the poor of the remote areas. Currently, different POL products are available on following rates: HOBC Rs 132.26 per litre, petrol at Rs 105.49 per litre, HSD at Rs 110.46 per litre, LDO at Rs 96.7 per litre and Kerosene Oil at Rs 101.95 per litre. After the expected changes in the POL prices, HOBC will be sold at Rs 135.26 per litre, HSD at Rs 113.56 per litre, LDO Rs 97.93 per litre, petrol Rs 103.36 per litre and kerosene oil at Rs 100.15 per litre.