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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.

  • Latest petroleum prices in Pakistan

    Latest petroleum prices in Pakistan

    ISLAMABAD: Pakistan was scheduled to review the petroleum prices on September 15, 2022. The revision in prices requires approval from the prime minister, who is attending two-day conference of Shanghai Cooperation Organization (SCO).

    There is no official announcement in this regard or delay in updating the prices of petroleum products.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    The latest prices of petroleum products in Pakistan, which was implemented on September 01, 2022 were:

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    Experts believe that Pakistan may increase the petroleum prices for the fortnight because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

  • Techaccess Pakistan hosts session on in power sector cybersecurity

    Techaccess Pakistan hosts session on in power sector cybersecurity

    ISLAMABAD: Techaccess Pakistan has hosted a session on “Cybersecurity Challenge in Critical Infrastructure (Power Sector)” in Islamabad aim of soliciting awareness amongst national public and private sector’s energy power entities against the global risks of cyber-attacks.

    The session was organized by Techaccess Pakistan and a large number of power sector’s professionals, trade and business representatives, NEPRA’s members of the authority and professionals attended the event.

    Chairman NEPRA, Tauseef H. Farooqi in his welcoming address highlighted the importance of the session. He remarked that cyberspace is the new 21st century warzone.

    Most of the cyber-attack in 2021 and 2022 were focused on energy sector. Cybersecurity is more challenging within power sector due to dispersed geo locations of generation plants and interdependence between OT and IT infrastructure.

    Cybersecurity incidents are now “Eco-System” challenges because it is not just one electricity supply chain actor that is targeted but the weakest link in somewhere in country’s power system. We need comprehensive cybersecurity governance model to deal with this Ecosystem challenge and promote security and resilience-by design culture.

    CTO Tariq Malik emphasized that the recent cyber-attacks by means of “viruses” or other known methods against primary energy operators and in general OT (SCADA) Systems, are once again reminding us that we are now facing a very expensive “digital pandemic” which has become an “endemic” in threat handling.

    In fact, many events of cyber incidents are continuously emerging at global level on several OT Systems on different industrial technological plants with a fluctuation of increases and temporary apparent decreases in the number of cases identified (not always able to detect or report).

    Unlikely, Industries have to learn to live with it, putting in place and continuously updating the necessary treatments to thwart and “mitigate their effects” according to “protocols” suggested by Cyber Security Authorities and Industrial entities, specialists in the Cyber Domain, daily involved to categories insurgences’ cyber incidents and their effects.

    In the session the trainer also talked about the cyclical practice of identifying, classifying, prioritizing, remediating and mitigating software vulnerabilities that provides the idea of vulnerability management.

    Among the indications that emerge from various parts as a common factor, it will undoubtedly be decisive that of investing with determination in the creation of a progressive national autonomy in the development of advanced products and technologies to be promptly integrated into the public cyber security ecosystem or private cyber security ecosystem.

    Mehmood Jabbar CEO of Techaccess Pakistan jointly with its industrial partner RTA has exactly approached this mission to have a national under controlled cyber security solution which is able to manage in a secure way its H24 support national Corporates and Governmental Authorities by the adaptation of RTA and iSOC to the operational requirements and IT / OT infrastructures for its most sensitive Customers.

    Saad Mudassir Chief Company Engineer from Associated Press of Pakistan said, “The event was so informative and well managed. The practical training is something above, considering generic workshops.”

  • Lucky Cement installs 25.3 MW solar energy plant at Karachi

    Lucky Cement installs 25.3 MW solar energy plant at Karachi

    KARACHI: Lucky Cement Limited on Wednesday announced a signing of an agreement for installation of a 25.3 megawatts captive solar power project at an estimated cost of Rs3 billion.

    In a communication sent to Pakistan Stock Exchange (PSX), Lucky Cement informed that it had entered into an arrangement with Orient Energy System (Private) Limited for the supply and installation of a 25.3 MW captive solar power project at its Karachi plant.

    READ MORE: Lucky Cement posts record Rs36.42 billion profit

    The estimated cost of the project is Rs3 billion and the company is in the process of establishing LCs for import of equipment which is subject to receiving approval from the State Bank of Pakistan (SBP).

    The project is expected to be completed in approximately eight months after the establishment of the LC.

    The company further said that the information is in addition to the earlier announced 34 MW captive solar project with a 5.589 MW Reflex energy storage at the company’s plant in Pezu, Lakki Marwat.

    READ MORE: Lucky Cement announces Rs26.53 billion 9M profit

    Sustainability and adoption of clean energy has remained a cornerstone of the company’s strategy and it was one of the first cement companies to install waste heat recovery (WHR) units at both its plant sites.

    The company’s initiative for investment in renewable energy projects will play a key role in cost savings as well as reduction of the country’s reliance on imported fuel.

    READ MORE: Lucky Cement installs 34MW solar power project

  • Pakistan to review petroleum prices on September 15, 2022

    Pakistan to review petroleum prices on September 15, 2022

    ISLAMABAD: Pakistan is likely to review petroleum prices on Thursday September 15, 2022 for the next fortnight starting from September 16, 2022.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Experts believe that Pakistan may increase the petroleum prices for the fortnight starting from September 16, 2022 because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    The finance division notified the new prices of petroleum products with effect from September 01, 2022.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

  • Pakistan raises petroleum prices by 100% in one year

    Pakistan raises petroleum prices by 100% in one year

    ISLAMABAD: Pakistan has increased prices of petroleum products by around 100 per cent during past one year, according to official data released on Friday.

    According to data released by Pakistan Bureau of Statistics (PBS), the price of petrol was increased by 99 per cent to Rs236.98 per liter by week ended September 08, 2022 as compared with Rs119.25 per liter by week ended September 09, 2021.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Similarly, the price of high speed diesel (HSD) recorded a massive increase of 114 per cent to Rs248.40 per liter by week ended September 08, 2022 when compared with Rs116 per liter by week ended September 09, 2021.

    The PBS issued weekly Sensitive Price Indicator (SPI) based inflation details.

    The year on year trend depicts an increase of 42.70 per cent. The items have witnessed increase in prices are included: Tomatoes (144.25 per cent), Diesel (114.08 per cent), Petrol (98.73 per cent), Pulse Masoor (76.34 per cent), Cooking Oil 5 litre (67.99 per cent), Mustard Oil (66.53 per cent), LPG (64.98 per cent), Washing Soap (64.50 per cent), Electricity for Q1 (63.03 per cent), Vegetable Ghee 2.5 Kg (62.53 per cent), Pulse Gram (61.02 per cent), Onions (59.97 per cent) and Vegetable Ghee 1 Kg (58.19 per cent).

    READ MORE: Pakistan’s headline inflation hits 47-year high in August 2022

    While a decrease observed in the prices of Chillies Powder (43.42 per cent), Sugar (18.07 per cent) and Gur (2.08 per cent).

    The SPI for the current week ended on September 08, 2022 recorded a decrease of 0.58 per cent. Decrease is observed in the prices of food items, Onions (41.99 per cent), Tomatoes (8.11 per cent), Bananas (2.51 per cent), Pulse Masoor (1.37 per cent), Vegetable Ghee 1Kg (0.55 per cent), Cooking Oil 5 litre (0.33 per cent), Mustard Oil (0.16 per cent) and Vegetable Ghee 2.5Kg & Sugar (0.11 per cent) each.

    READ MORE: Pakistan’s sensitive price inflation surges by 45%

    On the other hand, an increase observed in the prices of LPG (10.66 per cent), Wheat Flour (4.15 per cent), Eggs (3.96 per cent), Bread (3.27 per cent), Pulse Moong (2.74 per cent), Curd (2.72 per cent), Tea Lipton (2.50 per cent), Pulse Gram (1.65 per cent), Chicken (1.58 per cent), Milk Fresh (1.57 per cent), Fire wood (1.54 per cent) and Potatoes (1.02 per cent).

    During the week, out of 51 items, prices of 26 (50.98 per cent) items increased, 09 (17.65 per cent) items decreased and 16 (31.37 per cent) items remained stable.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

  • Mari Petroleum stops production from Zarghun, Bolan fields

    Mari Petroleum stops production from Zarghun, Bolan fields

    KARACHI: Mari Petroleum Company Limited (MPCL) on Thursday announced suspending production of oil and gas from one of its facility located in Balochistan due to torrential rains and flash floods.

    In a communication sent to Pakistan Stock Exchange (PSX), the company announced the suspension of production from Zarghun South Gas Fields and Bolan East Oil Field, Balochistan.

    MPCL is the operator of Zarghun South Gas Field and Ziarat Block in Balochistan with 35 per cent and 60 per cent working interest, respectively.

    Annual 10 MMCFD of gas is produced from Zarghun South Gas Field, which is supplied to SSGCL, while around 500 BPD of oil is produced from Ziarat Block (Bolan East – 1), which is mainly transported to Attock Refinery Limited through bowsers.

    The company said: “The ongoing torrential rains and flash floods in Balochistan have severely impacted the gas pipeline and road infrastructure around Zarghun South Gas Field and Ziarat Block.

    “Resultantly, the company is unable to continue production operation of these sites for the time being.”

    The company is taking all possible measures for early commencement of production after rehabilitation of the pipeline and roads network, according to the communication.

  • KE adjusts electricity bills under FCA relief package

    KE adjusts electricity bills under FCA relief package

    KARACHI: K-Electric, the power distribution utility for Karachi, has started providing relief under package to waive Fuel Charge Adjustment (FCA), which was announced by Prime Minister Shehbaz Sharif.

    According to a statement issued by the power utility on Tuesday, following PM’s Announcement of FCA’s relief package for the month of June, 1.8 million eligible electricity consumers across KE serviced territory in Karachi and adjoining regions are receiving benefit and being delivered adjusted bills for August at their doorsteps with extended due dates.

    READ MORE: Date extension demanded for electricity bills payment

    The announcement of June’s FCA relief has come in two parts, it was first announced for Non-ToU Residential Consumers having electricity consumption up to 200 units in June, and later it was extended to the same category of consumers with power consumption up to 300 units in June following the announcement by the Government of Pakistan.

    While the revised bills for August are being delivered to the consumers on their premises, it is also important to note that all those eligible consumers who have already paid their non-revised August bills will receive adjusted bills for the month of September.

    READ MORE: Power tariff hike termed disaster for industries

    Commenting on the matter, Spokesperson K-Electric said, “We are taking every possible measure to pass on the benefit to the qualifying consumers in line with the announcement made by the Honorable Prime Minister.

    Following the announcement of the relief package, our customer care centers operated for extended hours and remained open during the weekends for consumers’ convenience.

    However, to further ease the procedure for their benefit, we are also delivering the bills to consumers’ doorsteps so that they do not have to visit our centers physically. KE Customers may also download their bills via KE WhatsApp Service, KE Live App and from the company’s website.”

    While reiterating the eligibility criteria of the relief package, the Spokesperson further said, “June FCA’s relief applies only to Non-ToU residential consumers who have a power consumption equal to or less than 300 units.

    READ MORE: Pakistan petroleum sales slump by 24% in 2MFY23

    All the remaining electricity consumers, such as ToU residential consumers, Non-ToU residential consumers having power consumption exceeding 300 units, commercial, and industrial consumers do not qualify for the relief, and thus, are requested to timely pay their bills to avoid late payment surcharge.”

    “Our customer care platforms, including our call center 118, 8119 SMS service, and social media channels are also available 24/7 to answer any query from our consumers in this regard,” the Spokesperson further added.

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.

  • Date extension demanded for electricity bills payment

    Date extension demanded for electricity bills payment

    Karachi Chamber of Commerce and Industry (KCCI) on Monday demanded the authorities to extend the last date for payment of electricity bills across Pakistan as in the ongoing extraordinary situation, neither the business and industrial community nor the poor masses were in a position to pay their bills.

    Keeping in view the hardships being faced by the citizens and business and industrial community of Pakistan due to massive flashfloods, KCCI President Muhammad Idrees has appealed Prime Minister Shehbaz Sharif to issue directives for extension of last date for payment of electricity bills for entire Pakistan as in the ongoing extraordinary situation, neither the business and industrial community nor the poor masses were in a position to pay their bills.

    READ MORE: Power tariff hike termed disaster for industries

    In a letter sent to Prime Minister, President KCCI further requested to refrain DISCOs from charging FAC whereas the controversial Fixed Charges which are neither in favor of the industry nor the economy must also be withdrawn as soon as possible which would be widely welcomed by the entire business & industrial community of Pakistan.

    He pointed out that as the entire country is suffering badly because of massive flashfloods triggered by this year’s torrential rainfalls of Monsson Season, the business & industrial community across Pakistan is facing severe liquidity crunch as all the receivables have been pending due to ongoing extraordinary situation wherein the entire Pakistan remains totally sunk.

    READ MORE: Industry slams finance ministry for blocking letter of credit

    “Keeping in view the hardships being faced by the citizens and the business & Industrial community, some leniency would have been exhibited but unfortunately, this was not witnessed at any stage and regardless of taking the ground realities into consideration, electricity tariffs for all DISCOs and KE have been raised by more than 100 percent which are totally unabsorbable for the industries and unaffordable for the poor masses,” he noted.

    “Secondly, the issue of exorbitant Fuel Adjustment Charges (FAC) and Fixed Charges also stand unresolved which, we firmly believe, need to be reviewed and withdrawn at the earliest as these are neither in favor of the industries nor the economy,” he added.

    READ MORE: Clearance of banned cars, phones allowed on 100% surcharge

    He hoped that Prime Minister would instantly consider KCCI’s request and accordingly instruct relevant Ministry/ departments to provide relief otherwise, many industries, which are already at the verge of collapse, would close down forever which would trigger massive unemployment, chaos and other economic issues.

    READ MORE: Pakistan lifts ban on import of cars, phones, luxury items

  • Pakistan petroleum sales slump by 24% in 2MFY23

    Pakistan petroleum sales slump by 24% in 2MFY23

    KARACHI: Petroleum sales in Pakistan registered 24 per cent decline during first two months (July – August) 2022/2023, according to data released by Oil Companies Advisory Council (OCAC).

    According to details, the sales of all petroleum products fell to 2.96 million tons during first two months of the current fiscal year as compared with 3.90 million tons in the corresponding months of the last fiscal year.

    READ MORE: Pakistan high petroleum prices massively cut oil sales in July

    Produc-wise data showed a decline in all categories; offtake of petrol, high speed diesel (HSD) and furnace oil (FO) settled at 1.23 million tons, 0.94 million tons and 0.68 million tons, respectively.

    Total Petroleum sales settled at 1.53 million tons in August 2022, witnessing a decrease of 22 per cent YoY.

    Analysts at Arif Habib Limited attributed the fall to: heavy rainfall across the country leading to floods; lower furnace oil-based power generation; and massive surge in petroleum prices.

    READ MORE: Domestic oil sales grow by 14% in 8MFY22

    Hence, MS reported a drop of 13 per cent YoY arriving at 0.64 million tons in August 2022. Similarly, High Speed Diesel (HSD) volumes decreased by 26 per cent YoY clocking in at 0.50 million in August 2022.

    Whereas, Furnace Oil (FO) sales volumes plummeted by 35 per cent YoY in August 2022, reaching 0.33 million tons. Meanwhile, petroleum offtake climbed up by 6 per cent MoM, amid a reduction in MS and HSD prices compared to July 2022. As a result, MS and HSD volumes showed a jump of 7 per cent and 12 per cent MoM, respectively. However, FO sales recorded a fall of 7 per cent MoM in August 2022.

    READ MORE: Domestic oil sales surge by 18% in 5MFY22

    Company-wise analysis shows that PSO registered a drop of 23 per cent YoY in August 2022 which was majorly contributed by plunge in sales of MS, HSD and FO by 13 per cent, 29 per cent and 36 per cent YoY, respectively.

    Similarly, sales of APL and SHEL also plummeted by 23 per cent and 19 per cent YoY, respectively. Meanwhile, HASCOL’s offtake surged by 78 per cent YoY amid massive jump in MS and HSD volumes.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    During 2MFY23, market share of PSO, SHEL and HASCOL remained unchanged at 52 per cent, 7 per cent and 2 per cent YoY, respectively. Whereas, market share of APL improved by 1 per cent YoY to 10 per cent (9 per cent in 2MFY22). Meanwhile, market share of other OMCs declined to 29 per cent in 2MFY23 from 30 per cent in same period last year.

  • New petroleum prices in Pakistan from September 01, 2022

    New petroleum prices in Pakistan from September 01, 2022

    ISLAMABAD: Pakistan on Wednesday announced increase in prices of all petroleum products. These prices are implemented with effect from September 01, 2022.

    The finance division notified the new prices of petroleum products with effect from September 01, 2022.

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    It is important to note that the government revised the prices in the wake of falling international oil prices and massive recovery in rupee value.

    The sources said that the government was striving to get loans under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). The government met all the conditions and received $1.16 billion from the IMF after it’s executive board accorded approval on August 29, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is about $100 dollars. Brent crude futures were at $97.40 per barrel in New York trade on August 10, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022