The petroleum product prices likely to go down by Rs 1 to Rs 2 per liter as the crude oil price declined in the world market on expectation that OPEC countries would decide against cut in daily supplies.
The government announces petroleum product prices on monthly basis and next revision has been due to April 30. The government would decide whether to cut the petroleum product price or not, as the revenue collection has registered a shortfall against the overall target, the possibility of cut is remote. However, to make the masses happy, the government may trim the petroleum product prices.
“The price of crude oil has been decreased by in excess of five percent in last two or three days”, said an oil analyst. This give room to policy makers to cut the petroleum product prices by around rupees one to rupees 2 per liter. Currently the motor gasoline and high speed diesel have been selling at Rs 74 and Rs 83 per liter respectively.
The OPEC and non-OPEC have yet to decide when to cut the oil supplies on daily basis. Earlier, they have decided to cut the oil supplies by 1.8 million barrels per day, but the decision have yet to surface. The falling price would give cushion to the countries depending on the oil imports like Pakistan. Crude oil sold for over $100 a barrel in the summer of 2014, before bottoming out below $30 a barrel in January 2016. It now trades at just under $50 a barrel.