The government plans to cut petrol prices by more than Rs9 per litre in late June 2024, offering relief to citizens affected by inflation.
Industry sources suggest potential reductions of Rs9.28 per litre for petrol and Rs4.02 for high-speed diesel (HSD). The prices of kerosene and light diesel oil (LDO) might decrease by Rs2 and Rs4.07 per litre, respectively.
These anticipated price adjustments reflect global oil market trends, exchange rate dynamics, and fiscal policies influencing the energy sector. If implemented, the new prices will be Rs259.08 for petrol, Rs266.20 for HSD, Rs169.61 for kerosene, and Rs153.25 for LDO in the latter half of June.
Calculations assume no changes in the tax regime or currency values. The Inland Freight Equalization Margin (IFEM) stands at Rs7.83 for petrol and Rs3.73 for HSD.
The Oil and Gas Regulatory Authority (Ogra) will propose these price changes on June 15. The finance ministry will consult the prime minister before making a final decision.
Currently, the market rates are Rs268.36 for petrol and Rs270.22 for HSD. Kerosene and LDO are priced at Rs171.61 and Rs157.32 per litre, respectively.
Petrol primarily fuels personal vehicles, while HSD is essential for trucks, buses, and industrial equipment.
