March 25, 2020 (MLN): The reduction in prices of petroleum products by Rs 15 per litre to be effective from March 25, 2020 which would be financed through a reduction in Petroleum Development Levy (PDL) as per the statement of Ministry of Finance yesterday.
The new price of petrol is Rs 96.58 per litre after reducing from Rs 111.59.60 per litre. The price of High-Speed Diesel (HSD) has also been decreased to Rs 107.25 per litre from Rs 122.25 per litre. The price of Light Diesel Oil (LDO) has been lowered to Rs 62.51 per litre from Rs 77.51 per litre.
The price of Kerosene Oil (SKO) has been slashed from Rs 92.45 per litre to Rs 77.45 per litre as per the notification by Oil & Gas Regulatory Authority which only mentioned the new price of kerosene oil.
According to the research note by Al Habib Capital Markets, new prices would stay fixed for three months implying that in the current low international oil price scenario, However, the continuation of these prices beyond April 2020 would help the govt. to recoup these losses under PDL as international oil prices have fallen down further.
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