April 20, 2020 (MLN): The government has room to cut petroleum product prices by about Rs. 24 per liter, however, analysts have proposed that it should cut petroleum price by Rs. 10-15 per liter.
They have further suggested that the government should only reduce diesel price by Rs. 15 per liter and Mogas by Rs. 10 per liter.
According to them, a reduction in diesel price will help in reducing transportation costs, which in turn will reduce fruit, vegetable, and other product prices in Ramadhan.
Steps such as the above are being taken to help companies plug revenue shortfall and retain some of the earnings, as the outbreak of COVID-19 has destabilized the economy and industrial output.
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