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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.

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  • FPCCI demands 10% cut in petroleum prices

    FPCCI demands 10% cut in petroleum prices

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded the government to reduce petroleum prices by at least 10 per cent without any delay.

    FPCCI president Irfan Iqbal Sheikh in a statement on Wednesday demanded that the government should slash the prices of the petroleum products by 10 percent immediately as the international oil prices have substantively come down; and, the benefit needs to be shifted to the masses.

    READ MORE: FPCCI denounces super tax imposition

    He noted with a sigh of relief that oil prices are now under $100 per barrel. The move will bring down the inflation in a much more effective and tangible manner than raising the interest rate to a 14-year high of 15 percent, he added.

    Irfan Iqbal Sheikh emphasized that the full force of the multiplier effect of the raise of the petroleum products has not yet materialized in Pakistan and inflation will keep rising in coming 2 – 4 weeks if the relief from international market is not shifted to the end consumer.

    READ MORE: FPCCI identifies tax anomalies in budget 2022-2023

    FPCCI Chief explained that global macroeconomic sentiments are not optimistic and growth forecasts have been significantly lowered to the tune of being recessionary; and, the phenomenon may drive the international oil prices even lower than $90 per barrel in coming weeks. However, he maintained, we have to tread a cautious path and gradually but progressively lower the domestic petroleum prices.

    READ MORE: Move to legalize cryptocurrency trading in Pakistan

    Irfan Iqbal Sheikh has put forward two of the supplemental concerns of the business community with regards to the petroleum prices: (i) reliable and uninterrupted supply of the petroleum products in the backdrop of torrential rains across the length and breadth of the country (ii) further devaluation and volatility of the rupee in the inter-bank intra-day market observed on the first working day after Eid Ul Azha holidays, i.e. Wednesday, July 13, 2022 – which has the potential to partially nullify the effects of the drop in the international oil prices.

    FPCCI President has called for the prudent and diligent regulation of the markets to allow the country to benefit from the downward trends in international oil prices, edible oils and initial signs of receding supply constraints in some other commodities.

    READ MORE: Pakistan braces for worst food inflation: FPCCI

  • Slashing petroleum prices summary to be sent: Miftah

    Slashing petroleum prices summary to be sent: Miftah

    ISLAMABAD: The finance ministry will send a summary to reduce the prices of petroleum products for next fortnight on Wednesday, July 13, 2022, Finance Minister Miftah Ismail said on Tuesday.

    Earlier, Prime Minister Shehbaz Sharif directed the ministries of petroleum and finance to prepare the summary to reduce prices of petroleum products to provide relief to the masses.

    READ MORE: Pakistan may cut petroleum prices from July 16, 2022

    The government has decided to reduce the prices of petroleum products in the wake of massive fall in prices of crude oil in in the international markets.

    “After receiving the summary from the petroleum division, we will try to send it to the PM House,” Miftah Ismail said while talking to a private TV channel.

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

    He said, prices of petroleum would be reduced on the directives of the prime minister for public interest.

    The prime minister, he said, sincerely wanted to give the benefits of low petroleum prices in the international market to people without any delay.

    INFORMATION FROM REUTERS:

    READ MORE: Gas price hike report baseless: Musadiq Malik

    Global benchmark Brent crude tumbled $7 to below $100 a barrel on Tuesday on a strengthening dollar, demand-sapping COVID-19 curbs in top crude importer China, and rising fears of a global economic slowdown.

    “The sharp drop followed a month of volatile trading in which investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will spur an economic downturn that will pull the rug out from oil demand,” according to the international news agency.

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

    Brent crude futures were down $7.21, or 6.7 per cent, at $99.89 a barrel by 1:46 p.m. EDT (1746 GMT). U.S. West Texas Intermediate crude was down $7.80, or 7.5 per cent, at $96.30.

  • 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.

  • Dealers threaten shutting down petrol pumps from July 18

    Dealers threaten shutting down petrol pumps from July 18

    KARACHI: Pakistan Petroleum Dealers Association (PPDA) on Saturday 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: NA approves levy on petroleum products up to Rs50/liter

    Abdul Sami Khan, Chairman, PPDA at a meeting discussed the current dealers margin, which were forcing petroleum dealers to shut down their business. The association demanded that the dealers margin should be enhanced to 6 per cent.

    Sami Khan said that due to high cost of electricity their profit margin declined drastically. Besides, massive hike in prices of petroleum products also affected their business adversely.

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

    He further added, the protest shut down would continue till the demands were accepted. He said that fuel stations could not continue supply while sustaining continuous losses. At present the dealers are receiving margin after deduction of tax at Rs3.20 per liter on diesel and Rs3.90 on petrol per liter.

    READ MORE: Petroleum levy to generate Rs750 billion

    He also recalled the promise of increasing margin to 4.5 per cent given by the previous PTI government but due to increased prices of diesel and petrol, the PPDA is facing many problems in operating the fuel stations.

    The chairman threatened the present coalition government led by PML-N to close down the fuel stations if the demand of increasing margin to 6 per cent is not accepted.

    READ MORE: What are new petroleum prices in Pakistan?

  • Petroleum prices in Pakistan push inflation 13-year high

    Petroleum prices in Pakistan push inflation 13-year high

    KARACHI: The continuous rise in petroleum prices in Pakistan have pushed headline inflation up 13-year high at 21 per cent in June 2022.

    (more…)