Petrol Price to Come Down by Rs 9 per liter

Staff Report

Petrol price is likely to come down by Rs 9 per liter effective from June 16, 2024.

The government is likely to present an Eid gift to inflation-hit masses by slashing petrol price by more than Rs 9 per litre for the second half of June 2024.Govt Sets Ambitious Rs 1,281 Billion Target for Petroleum Levy in FY 2024-25

According to industry sources, petrol prices are likely to decrease by Rs 9.28 per litre, while high-speed diesel (HSD) could see a reduction of Rs 4.02 per litre. Additionally, kerosene oil may drop by Rs 2 per litre, and light diesel oil (LDO) could be reduced by Rs 4.07 per litre.

These price cuts are based on factors such as global oil prices, currency exchange rates, and financial considerations for the energy sector.

If approved, consumers could pay Rs 259.08 per litre for petrol, Rs 266.20 per litre for HSD, Rs 169.61 per litre for kerosene oil, and Rs 153.25 per litre for LDO during the last fifteen days of the current month of June 2024.

The estimated fuel price reductions are also based on the current tax structure and calculated with zero exchange rate adjustment and the Inland Freight Equalization Margin (IFEM) on petrol is Rs 7.83 and Rs 3.73 on HSD.

The Oil and Gas Regulatory Authority (OGRA) will submit its working for future oil prices on June 15, after which the finance ministry will consult with the Prime Minister for a final decision.

Currently, petrol is priced at Rs 268.36 per litre, HSD at Rs 270.22 per litre, kerosene oil at Rs 171.61 per litre, and LDO at Rs 157.32 per litre in the open market.

Petrol is mainly used for cars and motorcycles, while HSD powers heavy vehicles like trucks and buses, as well as industrial machinery. Kerosene oil is essential for cooking and lighting in households without electricity, and LDO is used in industrial boilers, furnaces, and certain engines, particularly in the textiles, cement, and power generation sectors.

If approved, the reduction in fuel prices is expected to help lower the country’s inflation rate, which is already showing signs of decline. This significant cut in oil prices on the occasion of Eid ul Azha would provide much-needed financial relief to inflation-hit consumers, easing their financial burden, sources added.