The Oil and Gas Regulatory Authority (OGRA) has recommended reduction in petrol prices by Rs. 7.06 per litre along with kerosene oil prices to be reduced by Rs. 11.88 per litre and reduction in light diesel oil (LDO) prices by Rs. 9.37 per litre.
However, for high speed diesel (HSD) prices the regulatory body has suggested a minimal increase of Rs. 0.05 per litre. OGRA has moved the summary to the Ministry of Energy Petroleum Division and it will then be forwarded to the Finance Ministry for Approval. The final decision by the government will be made on 31 May 2020.
If the Government accepts the recommendation, petrol prices will come down to Rs. 74.52 per litre from the current price of Rs. 81.56 per litre, kerosene price will be reduced from Rs. 47.44 per litre to Rs. 35.56 per litre and light speed diesel price will come down to Rs. 38.14 from current price of Rs. 47.51 per litre.
High Speed Diesel (HDS) with a minimal increase of Rs. 0.05 will come up to Rs. 80.15 per litre from the current price of Rs. 80.10 per litre.
The government also charges 17 percent sales tax (GST) on petroleum products including petroleum levy which is directly taken from consumers. Previously the government increased petrol levy on all petroleum products to account for the revenue shortfall.