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.
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:
As of today, PSO has scrapped the spot tender for October 22-23, 2021, and replaced it with cargo under the long-term contract from Qatar Gas using contractual provisions and prudent rescheduling, said a statement issued on Wednesday.
PSO strategically planned for winters (Jan-Feb 2021 & Nov-Dec 2021) in advance, when spot prices are usually at their highest, and arranged 28 cargoes instead of 20 under long-term contracts (6 cargos each in Jan and February 2021 & 7 cargoes each in November and December 2021). This has been planned to meet the ever-increasing gas demand in winters at the lowest possible rates. Compared with current spot market rates, this translates into approximate savings of $295 million.
PSO has also enabled considerable savings by reducing the number of spot cargoes from 12 to 4 in the year 2021 using contractual provisions available while maximizing long-term cargoes through contracts from 60 to 70.
Furthermore, the company has reduced the suspension period of LNG supply in Sep 2021 owing to scheduled FSRU dry dock activity from approximate 90 hours to 60, by bringing the FSRU laden with cargo under the long-term contract with Qatar, thereby curtailing the downtime for the industry and saving considerable cost to the economy.
PSO is committed to safeguarding Pakistan’s national interest through effective planning and making the best possible decisions.
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.
In a communication sent to Pakistan Stock Exchange (PSX), the company announced the hydrocarbon discovery from the exploratory well, Jugan-1, in the Latif Block which is situated in the Province of Sindh.
The company holds a 33.30 per cent working interest; Eni Pakistan Limited holds 33.30 per cent and UEPL, which is Operator of the Block, holds 33.40 per cent working interest in the Block.
The well was drilled and tested using the operator’s internal expertise and in consultation with the Block’s joint ventures partners.
The well was drilled to a depth of 11,350 ft. with a reservoir target as Lower Goru Sands. After completion of well, B sand zone (11,122-11,132 ft KB) was perforated which flowed 12.6 MMscfd (million standard cubic feet per day) of gas at FWHP (wellhead flowing pressure) of 3063 psig (pounds per square inch) at 28/64” choke size. Followed by B Sand testing, C sand zone (10,300’KB – 10,310’ KB) was also perforated which flowed 13.7 MMscfd (million standard cubic feet per day) of gas at FWHP (wellhead flowing pressure) of 3323 psig (pounds per square inch) at 28/64” choke size.
The discovery is the result of an aggressive exploration strategy adopted by the joint venture partners, leading to new opportunities.
The discovery will contribute in improving the energy security of the country from indigenous resources and it will also increase the hydrocarbon reserves of the joint venture partners and the country.
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.
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.
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.
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.
KARACHI: According to a notice to Pakistan Stock Exchange (PSX) on Tuesday, a consortium of Pakistani companies has been awarded exploration in Abu Dhabi.
The consortium of PPL (operator), OGDC, MARI and GHPL has been awarded an Offshore Block-5 in Abu Dhabi.
Analysts at Arif Habib Limited said that the consortium participated in Abu Dhabi’s second competitive exploration bid round in 2019 for acquiring one of the five blocks (three offshore and two onshore) being offered by Abu Dhabi National Oil Company (ADNOC).
For this purpose, ECC permitted these four companies to invest a total of $400 million ($100 million by each company) in August 2021 for 5 years by issuance of Corporate Guarantees in favor of ADNOC and Supreme Council for Financial and Economic Affairs (SCFEA).
With this, the consortium formed a Special Purpose Vehicle, which made it eligible for the exploration block.
Following the concession award of Offshore Block-5, the consortium announced development of a company Pakistan International Oil Limited (PIOL) located at Abu Dhabi Global Market, where each company has a 25 per cent stake.
The awarded block is located 100 km North East of Abu Dhabi and has an area of 6,223 km². It resides in an area which has prospects of large hydrocarbon reserves.
Albeit, these E&P companies for the first time will be able to explore, appraise and develop oil and gas resources in Abu Dhabi and expand its footprint internationally.
Beside Pakistani companies, other international companies such as Eni (Italy), PTTEP (Thailand), Occidental Petroleum (US), Index (Japan), Bharat Petroleum Company (India) and Indian Oil Company Limited (India) have won blocks in Abu Dhabi, according to the analysts.
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday reduced rate of sales tax on supply of petrol (Motor Spirit).
The revenue body issued SRO 1072(I)/2021 to make change in sales tax rate on supply of petrol.
According to the notification the sales tax rate on supply of petrol has been reduced to 10.54 per cent. The FBR brought down the sales tax rate from 10.77 per cent. Previously, the revenue body notified the sales tax rate on petroleum products through SRO 937(I)/2021 dated July 26, 2021.
The uniform rate of sales tax is 17 per cent. However, the government has reduced the rate of sales tax on various petroleum products in order provide relief to the masses.
Despite providing relief to general public through reduced rate of sales tax, the government increased the prices of various petroleum products with effect from August 16, 2021.
The prices of kerosene oil have been increased by Rs0.81 per liter, from Rs87.49 to Rs 88.30.
Likewise, the prices of Light Diesel Oil (LDO) have been increased by Rs1.10 per liter from Rs84.67 to Rs85.77.
However, the government kept prices of petrol and diesel unchanged with effective form August 16 for next fortnight.
According to the latest notification, the FBR has kept sales tax rates at reduced level for other petroleum products. However, sales tax rate on high speed diesel is remained at 17 per cent.
The sales tax rate on supply of kerosene oil is 6.70 per cent and on supply of light diesel oil is 0.20 per cent.
KARACHI: Pakistan State Oil (PSO) has announced a record breaking gross revenue of Rs1.4 trillion and highest ever profit after tax of Rs29.1 billion for the financial year 2020-2021 (FY21) after a loss after tax of Rs6.5 billion in the preceding year.
The net profit translated into a healthy earning per share of Rs62.07 vs. loss per share of Rs13.77 in the preceding fiscal year.
The announcement came after PSO’s Board of Management (BoM) reviewed the performance of the company together with its subsidiary Pakistan Refinery Limited (PRL) for the financial year 2020-21, ended on June 30, 2021, during the meeting held on August 23, 2021 in Islamabad.
Based on the outstanding financial and operational performance of the company, the Board of Management has announced a final dividend of Rs 10/- per share (100 per cent) which is in addition to the interim cash dividend of Rs 5/- per share (50 per cent) for financial year 2020-21.
The dividend for the financial year stands at Rs 15/- per share (150 per cent).
PRL, a subsidiary of PSO, also reported a profit after tax of Rs 0.94 billion during the year compared to a loss of Rs 7.6 billion in the previous year. On a consolidated basis, the group achieved a profit after tax of Rs 29.6 billion in FY21 compared to loss after tax of Rs 14.8 billion in FY20.
The board noted that these results have demonstrated PSO’s agility and strength across its diverse portfolio despite the challenging economic scenario and recurrent waves of the pandemic. PSO is leading the market by a large margin, delivering a phenomenal performance over and above the industry average.
The company exhibited an outstanding growth of 21.9 per cent in liquid fuels over last year with volumes reaching 9.2 million tons, attaining a market share of 46.3 per cent in FY21 compared to 44.3 per cent in FY20. PSO also achieved its highest ever volume of 7.6 million tons in the white oil segment despite the shrinking jet fuel and kerosene oil industry, with a market share of 45.2 per cent in FY21 vs. 44 per cent in FY20 i.e. a growth of 120 basis points (bps).
PSO set an all-time high record in Motor Gasoline (MoGas) achieving volumes of 3.5 million tons, an increase of 21.2 per cent from FY20, translating into market share of 41.3 per cent vs. 38.7 per cent last year – an increase of 260 bps.
The company made a strong closing in Hi-Cetane Diesel as well, achieving a volumetric growth of 21.1 per cent vs. industry growth of 17.5 per cent, translating into volumes of 3.7 million tons in FY21. The volumes contributed in regaining market share, bringing it to 47.2 per cent vs. 45.8 per cent in the preceding year i.e. an increase of 140 bps. PSO attained a volumetric growth of 53.2 per cent in black oil with volumes of 1.7 million tons and a market share of 51.7 per cent vs. 46 per cent in FY20.
In line with GOP’s clean and green initiative, PSO was the first OMC to upgrade the country’s fuel standard from Euro 2 to Euro 5. The launch of Hi-Octane 97 Euro 5, Premier Euro 5 and Hi-Cetane Diesel Euro 5 proved to be game changers in the industry, bolstering customer’s confidence in PSO’s products.
Building on its value creation model, the company prioritized high margin products i.e. High-Octane 97 Euro 5 and lubricants adding significant revenues with a volumetric growth of 177.6 per cent and 11.3 per cent respectively compared to last year. PSO’s first EV charging facility – Electro was also launched in Islamabad.
This performance is also a strong indicator of the change and transformation going on within PSO. With a focus on innovation and technology, PSO continued to enhance its digital capabilities to drive growth and enhance efficiency.
The company made significant strides on its journey of digital transformation with the launch of Pakistan’s first digitally integrated oil storage & dispatch terminal in Karachi. PSO also became the first public sector entity to launch e-procurement through SAP Ariba. Other automation initiatives included the launch of PSO Sahulat – an online order management system for dealers, Automated Queue Management System for tank-lorries and internal applications for fund management and employees leave management.
The company fast tracked infrastructural projects to gain operational efficiency. 174,000 tons of new and rehabilitated storages were added which significantly increase the number of day’s cover of petroleum products. Pipeline links have been completed to connect operational locations with White Oil Pipeline to make product movement safer and more efficient. 71 new vision retail outlets were also added to the company’s footprint.
Living up to its promise of keeping the wheels of the nation’s economy in motion and ensuring a seamless supply of fuel, the company imported 4.9 million tons of white oil products, an all-time high since the inception of the company. PSO has also played a pivotal role in the LNG sector. The company entered into another agreement with Qatar Petroleum under G2G arrangement to supply an additional 3 million tons of LNG for a period of 10 years. This contract shall add additional volumes to an already executed 15-year long term sales purchase agreement (SPA), making PSO the largest supplier of LNG in the country with a supply base of 6.75 million tons per annum.
With the burden of circular debt still large, to improve its balance sheet further, PSO recovered Rs 25.8 billion from the Power Sector along with late payment surcharge income. Reduction in finance cost by Rs. 3.2 billion. (24 per cent) further complemented the profitability of the company.
