It has been recommended by the Oil and Gas Regulatory Authority (OGRA) to reduce petrol prices by Rs7.06/litre. Also, OGRA has suggested reduction in kerosene price by Rs11.88/litre and light diesel oil (LDO) price by Rs9.37/litre for June 2020.
However, OGRA has recommended that diesel price will remain unchanged. If the suggestions of OGRA are accepted then the new petrol, kerosene, LDO prices will be Rs74.52/litre, Rs35.56/ litre and Rs38.14/litre respectively.
OGRA has suggested increase in diesel price by Rs0.05/litre to Rs80.15/liter.
It is pertinent to mention here that the government is charging 17% general sales tax (GST) on all petroleum products. Furthermore, petroleum levy (PL) on these products is also collected by the government which is taken from the consumers directly.
The government for May 2020 raised the petroleum levy on these products in order to overcome the revenue shortfall. On diesel, the petroleum levy was increased by Rs4.95 to Rs30/litre. Similarly on the petrol levy increased by Rs4.01 to Rs23.76/litre. On kerosene petroleum levy increased by Rs5.69 to Rs18.02/litre and PL on LDO was increased by Rs6.24 to Rs11.18/litre.
Also read: OGRA Suggests a Cut in Petrol Price
The summary with its recommendations have been sent to the Ministry of Energy (Petroleum Division) by OGRA. It will be sent to the Finance Ministry for approval. On 31st May the government will take a decision on it.