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  • New petroleum prices in Pakistan from August 1, 2022

    New petroleum prices in Pakistan from August 1, 2022

    KARACHI: Pakistan on Sunday revised the prices of petroleum products effective from August 01, 2022.

    Ministry of Finance announced the following rates effective from August 01, 2022:

    The new prices of petrol have been decreased by Rs3.05 per liter to Rs227.19 from Rs230.24.

    The rate of high speed diesel has been increased by Rs8.95 per liter to Rs244.95 from Rs236.

    The rate of kerosene oil has been increased by Rs4.62 per liter to Rs201.07 from Rs196.45.

    Similarly, the rate of light speed diesel has been decreased by 12 paisas per liter to Rs191.32 from Rs191.44.

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

    Previously the present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel and now as of July 29, 2022, the international prices of Brent Oil have fallen to $110 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was political decision as the government had to increase petroleum levy and apply sales tax.

    Furthermore the Pakistani Rupee (PKR) has sharply fell against the dollar leaving no room for the government but to increase the prices of petroleum products.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 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.

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

    The new government of Prime Minister Shehbaz Sharif increased the prices of petroleum products on May 26, 2022, June 02, 2022 and June 15, 2022. Cumulatively, the government increased the price of petrol by 84 per liter in these price hikes.

    The present government in the budget estimated to collect Rs750 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 June 03, 2022

  • Pakistan may increase petrol prices from August 1, 2022

    Pakistan may increase petrol prices from August 1, 2022

    KARACHI: Pakistan may review prices of petroleum products for the next fortnight on July 31, 2022, which also consider the massive depreciation of rupee value.

    Previously the present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel and now as of today July 21, 2022, the international prices of Brent Oil have fallen to $103 per barrel.

    Considering the latest price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was political decision as the government had to increase petroleum levy and apply sales tax.

    Furthermore the Pakistani Rupee (PKR) has sharply fell against the dollar leaving no room for the government but to increase the prices of petroleum products.

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

    The local currency depreciated by around 11 per cent during the month of July to close at 226.81 to the US Dollar on July 21, 2022.

    Pakistan is net importer of petroleum products and spends huge foreign exchange for the purchase.

    The country imported petroleum products worth $23.32 billion during fiscal year 2021-2022 as compared with $11.35 billion in the preceding year, showing a growth 105 per cent.

    In the previous announcement on July 14, 2022, the government announced the following prices of petroleum products.

    The new prices of petrol have been decreased by Rs18.50 per liter to Rs230.24 from Rs248.74.

    The rate of high speed diesel has been decreased by Rs40.54 per liter to Rs235.95 from Rs276.54.

    The rate of kerosene oil has been decreased by Rs33.81 per liter to Rs196.45 from Rs230.26.

    Similarly, the rate of light speed diesel has been decreased by Rs34.71 per liter to Rs191.44 from Rs226.15.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    The Prime Minister on July 12, 2022 directed the authorities to pass on the full benefit of falling oil prices in the international markets to the masses.

    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 June 16, 2022

    The new government of Prime Minister Shehbaz Sharif increased the prices of petroleum products on May 26, 2022, June 02, 2022 and June 15, 2022. Cumulatively, the government increased the price of petrol by 84 per liter in these price hikes.

    The present government in the budget estimated to collect Rs750 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.

  • Imran Khan demands substantial reduction in petroleum prices

    Imran Khan demands substantial reduction in petroleum prices

    ISLAMABAD: The chairman of Pakistan Tehreek-e-Insaf (PTI), Imran Khan on Monday demanded the present coalition government to reduce the petroleum prices drastically.

    In a public address on Monday, after securing landslide victory in by-election, Imran Khan demanded the government to cut off petrol prices because the oil prices in the international market has been reduced sharply.

    Imran Khan, the former prime minister who was removed from the executive post on April 10, 2022 through a motion of no confidence.

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

    Earlier, in February 2022, Imran Khan as the prime minister announced massive relief to the masses through grant of huge subsidy on petroleum prices and electricity tariff.

    The PTI had also kept the petroleum levy and sales tax at zero to avoid passing on the high prices of crude oil in international market.

    Imran Khan said that during his government the prices of petroleum products were kept at subsidized rates when oil prices in the international market were $106 per barrel. But now oil prices have been drastically reduced to $96 per barrel, so the government should reduce the price of petrol products according to the ratio of oil prices in the international market.

    The government on July 14, 2022 announced reduction in prices of petroleum products effective from July 15, 2022 after a massive decline observed in the prices of oil in international markets.

    READ MORE: Slashing petroleum prices summary to be sent: Miftah

    Following are the recent prices of petroleum products:

    The prices of petrol have been decreased by Rs18.50 per liter to Rs230.24 from Rs248.74.

    The rate of high speed diesel has been decreased by Rs40.54 per liter to Rs235.95 from Rs276.54.

    The rate of kerosene oil has been decreased by Rs33.81 per liter to Rs196.45 from Rs230.26.

    Similarly, the rate of light speed diesel has been decreased by Rs34.71 per liter to Rs191.44 from Rs226.15.

    READ MORE: FPCCI demands 10% cut in petroleum prices

    Although the Shehbaz led coalition government reduced the above prices ahead of by-election in Punjab but the PML-N failed to attract masses.

    The PML-N secured only four seats out of 20 showing its failure. This has also strengthened Imran’s statement for conducting general elections without any delay.

  • Petroleum dealers decide not to shut down petrol pumps

    Petroleum dealers decide not to shut down petrol pumps

    KARACHI: Pakistan Petroleum Dealers Association (PPDA) on Sunday decided to call of shut down strike scheduled for July 18, 2022 on government’s assurance to increase the dealers’ margin.

    PPDA on July 02, 2022 announced a complete shutdown of petrol pumps from July 18, 2022 in protest of rise in cost of doing business and falling dealers’ margin.

    READ MORE: Dealers threaten shutting down petrol pumps from July 18

    The government has assured the petroleum dealers to increase dealers’ commission by 100 per cent. The government has agreed to increase the dealers’ commission from Rs3.5 to Rs7 per liter.

    The government also assured the petroleum dealers to increase margin by Rs3.5 on petroleum products per liter. The government discussed that the procedure for increasing the dealers’ margin would be notified later.

    READ MORE: NA approves levy on petroleum products up to Rs50/liter

    According to the sources, the government will increase the 50 percent of dealers’ margin on July 31, 2022 and the next 50 per cent would be increased on August 15, 2022.

  • New petroleum prices in Pakistan from July 15, 2022

    New petroleum prices in Pakistan from July 15, 2022

    ISLAMABAD: Pakistan on Thursday announced reduction in prices of petroleum products effective from July 15, 2022 after a massive decline observed in the prices of oil in international markets.

    (more…)
  • Pakistan may cut petroleum prices from July 16, 2022

    Pakistan may cut petroleum prices from July 16, 2022

    ISLAMABAD: Pakistan likely to cut prices of petroleum products from July 16, 2022 in the wake of falling oil prices in the international markets.

    Prime Minister Shehbaz Sharif on Tuesday directed the authorities to pass on the full benefit of falling oil prices in the international markets to the masses.

    READ MORE: Gas price hike report baseless: Musadiq Malik

    The premier directed the ministries of petroleum and finance to prepare a summary for reduction in oil prices for next fortnight starting from July 16, 2022.

    Chairing a meeting on fuel prices, the Prime Minister said the people spent a difficult time, now they have the right to get full relief.

    He said we will take every step for the provision of relief to the masses who suffered heavily because of inflation caused by the previous government.

    READ MORE: Govt. halts gas supply to export industry: APTMA

    The Prime Minister said if the grace and blessings of Allah Almighty continue like this, they will bring more ease in the lives of the people.

    The meeting was also attended by senior officials of Oil and Gas Regulatory Authority (OAGRA) and other ministries and departments.

    Previously, the government was continuously increasing the prices of petroleum products since May 26, 2022 by eliminating subsidies and imposition of petroleum levy.

    The prices of petroleum products effective from July 01, 2022, were:

    READ MORE: FBR exempts sales tax on oxygen gas import

    The new prices of petrol have been increased by Rs14.85 per liter to Rs248.74 from Rs233.89.

    The rate of high speed diesel has been increased by Rs13.25 per liter to Rs276.54 from Rs263.31.

    The rate of kerosene oil has been increased by Rs18.83 per liter to Rs230.26 from Rs211.43.

    Similarly, the rate of light speed diesel has been increased by Rs18.68 per liter to Rs226.15 from Rs207.47.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Although, the prime minister directed the authorities to reduce the prices of petroleum products in the wake of fall in oil prices in the international markets but the imposition of petroleum levy may not give the government much room to reduce the prices drastically.

    Recently, National Assembly (NA) approved a levy of Rs50 per liter on each petroleum product. The assembly allowed the government to include the levy in the prices of petroleum products up to Rs50 per liter of each product.

  • Pakistan petroleum sales climb up by 16 per cent in FY22

    Pakistan petroleum sales climb up by 16 per cent in FY22

    KARACHI: The domestic sales of petroleum products in Pakistan have jumped up by 16 per cent to 22,595 metric tons in fiscal year 2021/2022 when compared with the preceding year, a report said on Monday.

    However, Pakistan oil sales declined by 11 per cent MoM to 1.9 million in June 2022 which is mainly driven by 14 per cent MoM dipped in MOGAS and High Speed Diesel (HSD) sales.

    READ MORE: Dealers threaten shutting down petrol pumps from July 18

    “This was due to sharp increase in MOGAS and HSD prices by 31 per cent and 51 per cent in June 2022, respectively,” said analysts at Topline Securities Research.

    This led to reduced demand of petroleum products and rise in usage of public transport/car pooling, they added.

    On YoY basis, oil sales remained flat during the month of June 2022.

    READ MORE: NA approves levy on petroleum products up to Rs50/liter

    MOGAS and HSD sales were down 12 per cent and 16 per cent on MoM basis to 702k tons and 713k tons, respectively. Excluding Furnace Oil (FO), overall petroleum sales volume stood at 1.48 million tons in June 2022, down 13 per cent MoM and 7 per cent YoY.

    “In FY22, Pakistan’s oil sales clocked in at 22.6 million tons, up 16 per cent YoY, which was much better than the last 10-year growth rate,” the analysts said.

    This was mainly led by higher than expected growth in Furnace Oil (FO) sales which reached 4 million tons (highest since FY18) due to high demand in power plants amidst non-availability of RLNG along with low hydel generation.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Excluding FO, oil sales were up 13 per cent YoY in FY22 due to uptick in MOGAS and HSD sales.

    Motor Gasoline (MOGAS) and High Speed Diesel (HSD) volumes witnessed jump of 9 per cent YoY and 15 per cent YoY to 8.9 million tons each in FY22. This was driven by (i) strong economic growth including growth in Agriculture sector, and (ii) increase in auto sales.

    Pakistan State Oil (PSO) sales outperformed the sector growing by 29 per cent whereas Attock Petroleum (APL) sales improved by 22 per cent in FY22. Shell Pakistan (SHEL) and Hascol Petroleum (HASCOL) underperformed the market during FY22.

    READ MORE: Petroleum levy to generate Rs750 billion

    Moving forward, we expect oil sales to decline by around 15 per cent YoY in the current fiscal year to due to (i) expected decline in auto sales in FY23, (ii) low growth estimated in agriculture sector (2.5 per cent for FY23F vs. 4.4 per cent in FY22), and (iii) sharp increase in petrol/diesel prices.

  • New prices of petroleum products in Pakistan from July 01, 2022

    New prices of petroleum products in Pakistan from July 01, 2022

    ISLAMABAD: The government of Pakistan has announced another raise in prices of petroleum products effective from July 01, 2022.

    The new prices of petrol have been increased by Rs14.85 per liter to Rs248.74 from Rs233.89.

    The rate of high speed diesel has been increased by Rs13.25 per liter to Rs276.54 from Rs263.31.

    The rate of kerosene oil has been increased by Rs18.83 per liter to Rs230.26 from Rs211.43.

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

    Similarly, the rate of light speed diesel has been increased by Rs18.68 per liter to Rs226.15 from Rs207.47.

    The National Assembly on Wednesday passed the Finance Bill 2022, which enabled the government to impose petroleum levy up to Rs50 per liter on petroleum products.

    At present the government is not charging a levy on sale of petroleum products.

    Besides, the sales tax is also at the minimum level of zero per cent on petroleum products.

    READ MORE: Petroleum prices in Pakistan may rise from July 01, 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.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

    The new government of Prime Minister Shehbaz Sharif increased the prices of petroleum products on May 26, 2022, June 02, 2022 and June 15, 2022. Cumulatively, the government increased the price of petrol by 84 per liter in these price hikes.

    The present government in the budget estimated to collect Rs750 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.

    Shaukat Tarin, former finance minister during PTI tenure said that on the demand of the International Monetary Fund (IMF) the government was increasing the rates of petroleum products. The government will further increase the prices of petroleum products to Rs300 per liter.

    READ MORE: Petroleum prices in Pakistan from June 01, 2022

    In a Tweet he said: “IMF wants more prior actions before they even consider taking the proposal to their board. Rs 855 billion Petroleum Development Levy (PDL) and 11 per cent sales tax. Will push cost to Rs300+/litre. Immediate increase in electricity prices. Rs800 billion provincial surpluses signed off by provinces, when they showed only Rs80 billion.”

    Previously, the government announced the increase of the price of diesel to Rs263.31 per liter effective from June 16, 2022. The rate of high speed diesel had been increased by Rs59 per liter. The rate of this product was Rs144.16 as of May 26, 2022. A cumulative increase of Rs119 during the past 20 days. Similarly, the price of petrol increased by Rs84 to Rs233.89 from Rs149.89 as of May 26, 2022.

    READ MORE: Petroleum levy to generate Rs750 billion

  • New petroleum prices in Pakistan from June 16, 2022

    New petroleum prices in Pakistan from June 16, 2022

    ISLAMABAD: Pakistan on Wednesday announced yet another hike in petroleum prices effective from June 16, 2022.

    Finance Minister Miftah Ismail at a press conference announced the increase in prices of petroleum products.

    It is third consecutive increase in petroleum products. The government massively increased the prices of petroleum products.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

    The finance minister announced an increase of Rs24 per liter in price of petrol.

    The price of petrol increased by Rs84 to Rs233.89 from Rs149.89 as of May 26, 2022.

    Similarly, the government announced to increase the price of diesel to Rs263.31 per liter effective from June 16, 2022. The rate of high speed diesel has been increased by Rs59 per liter. The rate of this product was Rs144.16 as of May 26, 2022. A cumulative increase of Rs119 during past 20 days.

    New prices of petroleum products with effect from June 16, 2022 will be as follows;

    i. MS ( Petrol) Rs. 233.89/Liter

    ii. High Speed Diesel(HSD) Rs. 263.31/Liter

    iii. Kerosene (SKO) Rs. 211.43/Liter

    iv. Light Diesel Oil (LDO) Rs. 207.47/Liter.

    READ MORE: Petroleum prices in Pakistan from June 01, 2022

    Previously, the petrol prices have been increased up to Rs60 per liter during May 27 to June 02.

    The Finance Minister Miftah Ismail announced the increase in prices of petroleum products twice to persuade the International Monetary Fund (IMF) to release the next tranche of around $1 billion.

    The PTI government during its tenure maintained the petrol prices by granting huge subsidized rates to facilitate the citizens. As though the new government still kept the same subsidy on petrol till May 26, 2021.

    READ MORE: Petroleum levy to generate Rs750 billion

    However, on account of pressure by IMF and the high price of oil in the international market has left no option for the government to minimize the prices.

    According to the sources, the government may further increase the petroleum prices tonight to meet the IMF demand.

    It may be mention here that the government has very few choices in not revising the prices of petroleum products because of high international oil prices and sharp decline in rupee value.

    READ MORE: Share of domestic electricity consumption declines

  • New petroleum prices in Pakistan from May 27, 2022

    New petroleum prices in Pakistan from May 27, 2022

    ISLAMABAD: The finance division of the ministry of finance on Thursday issued new prices of petroleum products effective from May 27, 2022 after a raise of Rs30 per liter on all petroleum products.

    The new prices of petroleum products are as follow:

    READ MORE: Pakistan increases petroleum prices by Rs30 per liter

    The rate of petrol has been increased to Rs179.86 per liter from Rs149.86.

    The price of high speed diesel (HSD) has been jacked up to Rs174.15 per liter from Rs144.15.

    The rate of kerosene oil has been increased to Rs155.56 per liter from Rs125.56.

    The price of light diesel oil has been increased to Rs148.31 per liter from Rs118.31.

    READ MORE: Govt. decides to continue subsidy on petroleum prices

    About couple of hours ago, Finance Minister Miftah Ismail announced to raise the prices of all petroleum products in order to comply with the demand of International Monetary Fund (IMF) for continuation of bailout package. Pakistan will get around $1 billion tranche under Extended Fund Facility (EFF) after fulfilling the IMF demand.

    The finance division in a press release said that maintaining the existing petroleum products prices at the existing subsidized rates is constantly increasing the twin deficit for the government besides posing huge risk for energy supply chain.

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

    Also Oil Marketing Companies (OMCs) and refineries are facing difficulties in getting confirmation of international banks for LCs/SBLCs, reluctance of local banks in opening of LCs and hardships of importers in obtaining insurance coverage for very high prices cargos.

    In order to rationalize the petroleum products prices, the government has decided to revise the existing petroleum products prices.

    “To keep prices of petroleum products affordable, prices are increased partially and new prices effective from May 27, 2022,” the finance division said.

    READ MORE: New government keeps petroleum prices unchanged