The Oil and Gas Regulatory Authority (OGRA) has recommended up to Rs 44.07 per liter reduction in the price of major petroleum products for the month of May to share the benefit of reduced international prices with the consumers.
According to Dawn, the authority has proposed a decrease of Rs 33.94 for the price of high-speed diesel (HSD), a drop of 31.6% from the existing Rs 107.25 to Rs 73.31 per liter. For petrol it has suggested a decrease of Rs 20.68 per liter (down 21.4%) to Rs 75.9, which currently stands at Rs 96.58 per liter.
Meanwhile it has proposed to cut kerosene oil’s price by Rs 44.07, a 56.9% reduction from current Rs 77.45 per liter rate to Rs 33.38 per liter. For light diesel oil (LDO), the price has been recommended to be slashed by Rs 24.57 (-39.3%) to Rs 37.94 per liter from current Rs 62.51 per liter.
If the summary is approved by the prime minister, the finance ministry will make an announcement about the reduction in petroleum products’ prices on the 30th of April to take effect from the 1st of May 2020.
The proposed reduction in fuel prices comes as oil prices slumped again on Tuesday amid concern about dwindling crude storage capacity worldwide and fears that fuel demand may only recover slowly once countries ease curbs imposed on economic and social activity to combat the coronavirus pandemic.