The government on Tuesday announced it will slash oil prices by up to Rs 4.71 per litre, from Wednesday, following a reduction in global oil prices.
Turning down the proposal of Oil and Gas Regulatory Authority (OGRA) to transfer full relief to consumers, the Finance Ministry absorbed part of the impact in the rate of petroleum levy to bring it to the budgeted level.
The rates of petroleum levy have been brought to the budgeted level via Rs 10 per litre on petrol, Rs 6 per litre on kerosene oil, Rs 8 per litre on high-speed diesel (HSD) and Rs 3 per litre on light diesel oil (LDO).
The price of petrol, the most commonly used fuel in cars, will be reduced to Rs 97.59, down from the current rate of Rs 102.30 per litre after a cut of Rs 4.71 per litre.
The price of HSD, used mainly in transport vehicles and agriculture, will be reduced by Rs 2.53 per litre to Rs 106.06 per litre from Rs 108.59 per litre.
Kerosene oil, used as a fuel in remote areas where liquefied petroleum gas (LPG) is not available, will see a price reduction of Rs 4.09 per litre. After the reduction, kerosene oil will be sold at Rs 94.17 coming down from Rs 98.26 per litre.
The price of LDO, used for industrial purposes, will fall by Rs 4.22 per litre to Rs 89.06.
Similarly, the price of jet fuels JP-1 and JP-8 will come down by Rs 5.21per litre to Rs 83.44 and Rs 83.11 per litre, respectively.
