Sources said that the petrol and high-speed diesel prices are likely to be reduced by Rs12 per litre each while the rate of kerosene oil would be slashed by Rs8 per litre.
The final decision regarding slash in petrol price will be made after observing fluctuation in the international market from September 12 to 14.
The new rates will come into effect from September 16.
Previously, the government slightly reduced petroleum prices. The petrol price was reduced by Rs 1.86 per litre, bringing the new price to Rs 259.10, while the High-speed diesel saw a reduction of Rs 3.32 per litre, now costing Rs 262.75.
Oil settles near 3-year low
Global oil benchmark Brent crude futures settled at their lowest level since December 2021 on Tuesday, after OPEC+ revised down its demand forecast for this year and 2025, offsetting supply concerns from Tropical Storm Francine.
Brent crude futures settled down $2.65, or 3.69%, at $69.19 a barrel. U.S. West Texas Intermediate (WTI) crude settled down $2.96, or 4.31%, to $65.75 a barrel.
OPEC also cut its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd. Prices slid on the weakening global demand prospects and expectations of oil oversupply.
Meanwhile, Asian refiners’ margins fell to their lowest seasonal level since 2020 last week on rising supplies of diesel and gasoline.
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