The government on Thursday announced a significant hike in the price of petrol, increasing it by Rs 4 per liter, bringing the cost to an all-time high of Rs 127.30 per liter. This marks the highest petrol price in Pakistan’s history. The new prices, along with adjustments to other petroleum products, will take effect from October 1, 2021.
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You can go through stories related to energy. The stories are about changes in petroleum prices and updates on energy sector of Pakistan and world.
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OGDCL announces gas discovery in KPK
In a significant development for Pakistan’s energy sector, the Oil and Gas Development Company Limited (OGDCL) has announced a major gas discovery in the province of Khyber Pakhtunkhwa (KPK).
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Sales tax on high speed diesel reduced by 31.5%
ISLAMABAD: The federal government has announced a reduction of sales tax rate by 31.5 per cent on supply of High Speed Diesel (HSD). The rate sales tax on HSD has been reduced in order to lower the impact of higher prices pass on to the consumer.
The Federal Board of Revenue (FBR) issued SRO 1225(I)/2021 dated September 18, 2021 to notify the reduction in sales tax on HSD.
According to the SRO the sales tax rate on HSD has been reduced to 11.64 per cent from previous level of 17.00 per cent.
Previously, the FBR issued SRO 1072(I)/2021 dated August 26, 2021 to revise the sales tax on petroleum products.
In the latest SRO only sales tax rate on HSD has been reduced. The sales tax rates on other petroleum products have been kept unchanged. The sales tax rates on petroleum products are: Petrol 10.54 per cent; HSD 11.64 per cent; Kerosene oil 6.70 per cent; Light Diesel Oil 0.20 per cent.
It is worth mentioning that the federal government on September 15, 2021 announced an increase in the prices of petroleum products.
With the announcement the petrol prices have gone up to the all-time high level. However, it is even more important that the sales tax rates are on the lowest side when compared with the rates applicable during year 2015.
The government has increased latest prices owing to fluctuations in petroleum prices in the international market and exchange rate variation.
Following are the rates of petroleum products, which will take effect from September 16, 2021:
The rate of petrol has been increased by Rs5 to Rs123.30 per liter from Rs118.30.
The rate of high-speed diesel has been increased by Rs5.01 to Rs120.04 per liter from Rs115.03.
The rate of kerosene oil has been increased by Rs5.46 to Rs92.26 per liter from Rs86.80.
The rate of light diesel oil has been increased by Rs5.92 to Rs90.69 from Rs84.77.
In the latest SRO 1225(I)/2021 dated September 18, 2021, the sales tax rates on petroleum products are: Petrol 10.54 per cent; HSD 11.64 per cent; Kerosene oil 6.70 per cent; Light Diesel Oil 0.20 per cent.
The present sales tax rates on petroleum products are much lower when compared with sales tax rates prevailed about six years ago. The FBR issued SRO 963(I)/2015 dated September 30, 2015. The sales tax rates under this SRO are: Petrol 26 per cent; Kerosene 30 per cent; High Speed Diesel 50 per cent; Light Diesel Oil 29.50 per cent.
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Petrol price increased to all-time high at Rs123.30/liter
ISLAMABAD: The price of motor spirit (petrol) has been increased to all-time high at Rs123.30 per liter and will take effect from September 16, 2021.
The Finance Division on Wednesday issued the rates of petroleum products for the next fortnight. The government has increased the prices of all petroleum products for the next 15 days.
The government has increased the prices owing to fluctuations in petroleum prices in the international market and exchange rate variation.
Following are the rates of petroleum products, which will take effect from September 16, 2021:
The rate of petrol has been increased by Rs5 to Rs123.30 per liter from Rs118.30.
The rate of high-speed diesel has been increased by Rs5.01 to Rs120.04 per liter from Rs115.03.
The rate of kerosene oil has been increased by Rs5.46 to Rs92.26 per liter from Rs86.80.
The rate of light diesel oil has been increased by Rs5.92 to Rs90.69 from Rs84.77.
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PSO’s prudent planning helps considerable savings
KARACHI: Prudent planning and strategic thinking. Pakistan State Oil (PSO) has enabled considerable savings and created value for end users by taking the following steps:
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K-Electric profit surges five times
KARACHI: The annual profit of K-Electric, the utility company providing electricity to Karachi city, has surged by five times to Rs12 billion for the year ended June 30, 2021.
According to financial results approved by the board of directors on Monday, the profit of the company sharply increased to Rs12 billion for the year 2020/2021 as compared with the loss of Rs3 billion in the preceding fiscal year.
Sale of energy increased to Rs255 billion for the year under review as compared with Rs193.87 billion in the preceding year.
The company claimed tariff adjustment of Rs70 billion for the year 2020/2021 as compared with Rs95 billion in the preceding year.
Cost of sales recorded at Rs265.85 billion for the year ended June 30, 2021 as compared with Rs245 billion in the preceding year.
The company declared gross profit of Rs59.19 billion for the fiscal year 2020/2021 as compared with Rs44 billion in the preceding fiscal year.
Expenses of the company for the year under review increased to Rs32.7 billion as compared with Rs26.79 billion during the preceding fiscal year.
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Pakistan Petroleum discovers hydrocarbons in Sindh
KARACHI: Pakistan Petroleum Limited (PPL) on Thursday announced the discovery of hydrocarbons in Sindh province.
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OGDCL discovers gas reserves in Khyber Pakhtunkhwa
KARACHI: Oil and Gas Development Company Limited (OGDCL) on Tuesday announced the discovery of natural gas in the province of Khyber Pakhtunkhwa, Pakistan.
In a communication shared with the Pakistan Stock Exchange (PSX), the OGDCL said that the company being operator of Wali Exploration License with 100 per cent working interest had made a gas and condensate discovery over Hangu Formation from its exploratory efforts at Wali #01 well which is located in FR Lakki, Khyber Pakhtunkhwa Province, Pakistan.
“Wali# 01 was spudded-in on December 02, 2019, as an exploratory well and drilled down to a total depth of 4727m (measured depth) inside Kawagarh Formation. Based on the good oil/gas shows during drilling, interpretation of open whole logs data, successful testing was carried out in Kawagarh formation, which proved to be gas/condensate discovery.”
Now, Drill Stem Test (DST) # 02 has been performed in Hangu Formation. The well flowed at the rate of 11.361 Million Standard Cubic Feet per Day (MMSCFD) gas and 895 Barrels per Day (BPD) condensate with Well Head Flowing Pressure (WHFP) of 2800 Pounds per Square Inch (PSI) at 32/64” choke size.
It is highlighted that this gas/condensate discovery has further extended the hydrocarbon play area on the southwestern part of the Bannu Basin.
OGDCL being the leading Exploration & Production Company in Pakistan has adopted an aggressive exploration strategy which has resulted in hydrocarbons discoveries.
“This discovery will add to the hydrocarbon reserves base of OGDCL and of the country. It will positively contribute to mitigating energy demand and supply gap from indigenous resources,” the company said, adding that the company would continue to strive for increasing shareholders’ value through a robust exploration program.
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Pakistan oil sales jump up by 26% in August
KARACHI: Pakistan’s domestic oil sales have jumped up by 26 percent to 1.97 million tons, which is the highest since May 2018.
Analysts at Topline Securities said that oil sales are also up 1 percent Month on Month (MoM), whereas oil sales during the first two months of the fiscal year 2021/2022 clocked in at 3.9 million tons, up 22 percent YoY.
Furnace oil sales improved by 63 percent YoY to 0.5 million tons in Aug-2021 primarily led by rising LNG prices and shortage in world LNG supply which is an alternative fuel for FO.
Growth in oil sales is also fueled by economic recovery as last year’s sales were mainly impacted by lockdowns and economic slowdown.
Consequently, MOGAS (MS) and High-Speed Diesel (HSD) sales are up 6 percent YoY and 32 percent YoY, respectively. Strong auto sales have also led to growth in these categories during the period under review.
Company-wise data shows that Pakistan State Oil (PSO), Attock Petroleum (APL) and Shell Pakistan (SHEL) have gained in terms of their market share.
PSO posted growth of 36 percent YoY as its oil sales clocked in at 1.0 million tons. PSO’s FO sales have jumped by 80 percent YoY as its market share in this segment improved to 66 percent in Aug-2021 vs. 60 percent in Aug-2020.
APL’s oil sales also improved by 56 percent YoY to 0.2 million tons, whereas SHEL’s sales are up 28 percent YoY to 0.1 million tons.
HASCOL witnessed a decline of 76 percent YoY in Aug-2021 as it continues to lose its market share as it stands at just 1 percent compared to 10 percent 3-years back.
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Prices of all petroleum products reduced
ISLAMABAD: The federal government on Tuesday announced a reduction in prices of all petroleum products for next fortnight.
A statement issued by the Finance Division the new reduced prices will take effect from September 01, 2021.
According to the notification the price of petrol has been reduced by Rs1.50 to Rs118.30 per liter from Rs119.80.
The price of high speed diesel (HSD) has been reduced by Rs1.50 to Rs115.03 per liter from Rs116.53.
Similarly, the rate of kerosene oil has been reduced by Rs1.50 to Rs86.80 per liter from Rs88.30.
The price of light diesel has been reduced by one rupee to Rs84.77 per liter from Rs85.77.
The statement issued by the finance division said that despite international price fluctuation in petroleum products and anticipated increase in future prices, the government has reduced the price in order to provide maximum relief to the consumer.
The government is firmly committed to ensure stability in prices of essential commodities and has sustained the price pressure in line with its commitment to the common man.
It is pertinent to mention that petroleum levy is kept at minimum which is a clear reflection that the government is fully cognizant of the impact of fuel prices on the prices of basic items that affect people directly.