OGRA proposes reduction in petroleum prices

The decision was taken in light of the rise in petroleum prices in international market

The decision was taken in light of the rise in petroleum prices in international market

The federal government has decided not to change the prices of petroleum products for the month of October, 2019.

The price adjustments will come effect on Wednesday.

As for the reason for the increase, the department cited higher oil prices during the period under review compared to the previous one.

A finance ministry press release said decision to maintain the prices has been taken to offset expected prices hike for November.

The prices of diesel and petrol were slashed by Rs5.33 and 4.59 a litre respectively. In Chennai and Kolkata, petrol prices have reached Rs 77.28 and Rs 77.03, respectively, while diesel rates are Rs 71.09 and Rs 69.66, respectively.

In the global market, Brent crude futures fell 20 cents to $61.71 a barrel by 0632 GMT while U.S. West Texas Intermediate (WTI) crude futures edged down 3 cents to $55.88 a barrel. The price of petrol in Delhi was ₹74.42 a litre, while diesel was sold at ₹67.33, up from Sunday's price of ₹74.34 a litre for petrol and ₹67.24 a litre for diesel. As per Indian Oil's daily fuel pricing formula, consumers will have to shell out Rs 74.34 for a litre of petrol in Delhi today, while they will have to pay Rs 67.24 for a litre of diesel.

Oil prices have shot-up, and the rand is performing badly against the U.S. dollar once more.

In the meantime, Saudi Arabia has warned that oil prices could increase to "unimaginably high numbers" if the world does not act to deter Iran.

The Department of Energy said the petrol price could continue to climb if attacks on oil facilities in Saudi Arabia intensified.

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