Oil and Gas Regulatory Authority (Ogra) has recommended to the government to reduce petroleum products prices from June 1st, 2020. As per details, owing to the sharp decline in the international market. Ogra) has recommended to the government to reduce petrol prices by Rs 5 to Rs 10 per liter from June 1st, 2020. Moreover OGRA has proposed Rs 2 reduction in diesel price.
Summary of OGRA’s reduction in petroleum products will be sent to the Finance Ministry tomorrow. A significant decline witnessed in sales of petroleum products due to the Coronavirus outbreak.
If the government accepts the suggestion of the Authority, the petrol price will come down from current Rs 81.58/liter to Rs 76.58/liter on reduction after Rs 5 per liter and Rs 71.58/liter after reduction of Rs 10 per liter.
On the other hand, Brent crude dropped slightly to 0.17%, trading at $36.18. U.S’s West Texas Intermediate crude futures also lost about 0.35%, at $34.23 a barrel.
OPEC (Organization of Petroleum Exporting Countries) and significant oil producers including Russia, a group is also known as OPEC+, are decreasing their crude oil production by 10 million barrels per day in May-June to boost crude oil prices as measures to diminish relative weak demand for crude caused by the pandemic.
Crude oil prices and oil demand jumped over the past few months as a result of the pandemic.
However, with the lifting of global lockdowns and gradual reopening of global economies, oil prices are expected to rebound. Russia’s energy minister, Alexander Novak, said the global oil supply and the oil demand will most likely rebalance by July.