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  • Miftah defends petrol price hike in Pakistan from August 16, 2022

    Miftah defends petrol price hike in Pakistan from August 16, 2022

    ISLAMABAD: Finance Minister Dr. Miftah Ismail on Tuesday defended the government decision to increase the prices of petrol that are implemented from August 16, 2022

    A day earlier, Prime Minister Shehbaz Sharif approved the summary to increase the price of petrol with nominal decline in other petroleum products.

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

    The government announced a significant increase of Rs6.72 per liter in price of petrol to Rs233.91 from Rs227.19 effective from August 16, 2022.

    The rate of high speed diesel (HSD) has been nominally reduced by 51 paisas to Rs244.44 from Rs244.95. The price of kerosene oil has been decreased by Rs1.67 to Rs199.40 from Rs201.07. The rate of light diesel oil (LDO) has been nominally enhanced by 43 paisas to Rs191.75 from Rs191.32.

    The people of Pakistan were expecting a significant decline in petroleum prices in the wake of sharp decline in international oil prices and massive recovery in rupee value against the dollar during the month of August 2022.

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

    All the quarters have strongly criticized the government for increase price of petrol. The criticism was also came from coalition partners of the present government.

    However, Miftah Ismail through Tweet presented a brief explanation on how petrol and diesel prices are set in Pakistan.

    Oil and Gas Regulatory Authority (OGRA) takes the average of petroleum prices, adds freight and premium paid by Pakistan State Oil (PSO) on top of these prices, and multiplies that by the exchange rate.

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

    In addition it also “trues up” the previous fortnight’s cost by taking into account the rupees paid by PSO at the actual exchange rate as opposed to the average used to estimate the previous fortnight’s cost.

    “We have not added any new tax or levy to the price. The price of petrol has gone up (and diesel has gone down) because the cost paid by PSO in the previous fortnight was more than the cost estimated by OGRA and also because the premium paid by PSO on petrol increased and premium paid on diesel remained unchanged,” Miftah Ismail said.

    “Again, not one paisa of new taxes or levies was added,” he repeated.

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

  • New petroleum prices in Pakistan from August 16, 2022

    New petroleum prices in Pakistan from August 16, 2022

    ISLAMABAD: Pakistan has revised prices of petroleum products on Monday with effect from August 16, 2022. The finance division issued following new prices that will implement from August 16, 2022:

    The price of petrol has been increased by Rs6.72 per liter to Rs233.91 from Rs227.19.

    The rate of high speed diesel (HSD) has been nominally reduced by 51 paisas to Rs244.44 from Rs244.95.

    The price of kerosene oil has been decreased by Rs1.67 to Rs199.40 from Rs201.07.

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

    The rate of light diesel oil (LDO) has been nominally enhanced by 43 paisas to Rs191.75 from Rs191.32.

    A press release issued by the finance division stated that in the wake of fluctuations in petroleum prices in the international market and exchange rate variation, the government had decided to revise the existing prices of petroleum products to pass on the impact to the consumers.

    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.

    It was believed that the government would reduce the prices of petroleum products considering the latest crude oil prices in the international markets and sharp recovery in local currency against the US dollar.

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

    Some good developments have been seen since the last amendment in prices of petroleum products.

    The rupee continued the gain for the seventh straight session after falling to historic low. The local unit witnessed record low at Rs239.94 against the dollar on July 28, 2022. However, since then the rupee is continuously gaining to the dollar. The local currency gained about Rs18.75 or 7.51 per cent during the past seven trading days till August 10, 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.

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

    The benchmark Brent crude is below $100 dollars in the international market. 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, 2022. 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.

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

    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 June 03, 2022

  • Pakistan to review petroleum prices amid rupee appreciation, falling global oil

    Pakistan to review petroleum prices amid rupee appreciation, falling global oil

    KARACHI: Pakistan to review the existing prices of petroleum products on August 15, 2022 for next fortnight amid falling international oil prices and massive recovery in rupee value.

    The government may reduce the prices of petroleum products considering the latest crude oil prices in the international markets and sharp recovery in local currency against the US dollar.

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

    Previously, the government reviewed the prices of petroleum products on July 31, 2022. As per the notification issued by the finance ministry, the government revised the following prices effective from August 01, 2022:

    The prices of petrol have 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.

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

    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.

    Some good developments have been seen since the last amendment in prices of petroleum products.

    The rupee continued the gain for the seventh straight session after falling to historic low. The local unit witnessed record low at Rs239.94 against the dollar on July 28, 2022. However, since then the rupee is continuously gaining to the dollar. The local currency gained about Rs18.75 or 7.51 per cent during the past seven trading days till August 10, 2022.

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

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

    The benchmark Brent crude is below $100 dollars in the international market. 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, 2022. 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 June 03, 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: ECC approves petroleum dealer margin at Rs7/liter

    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.

  • Pakistan high petroleum prices massively cut oil sales in July

    Pakistan high petroleum prices massively cut oil sales in July

    KARACHI: A big jump in petroleum prices in Pakistan has reduced the domestic sales of oil for the month of July 2022.

    According to details released on Tuesday Pakistan oil sales commenced the fiscal year 2022/2023 with a decline of 26 per cent MoM to clock in at 1.44 million tons in July 2022 (lowest since February 2021).

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

    Analysts at Topline Securities attributed the sharp decline in domestic oil sales to significant decline in all 3 petroleum products: High Speed Diesel (HSD) sales reduced by 38 per cent MoM to 444, 000 tons, Motor Gasoline (MOGAS) sales declined by 15 per cent MoM to 594,000 tons and Furnace Oil (FO) sales dipped by 23 per cent MoM to 350,000 tons.

    Major reasons behind the decline in oil sales are, (i) Eid holidays during the first half of July where inter provincial transportation activity subsided which led to low HSD sales, and (ii) monsoon season across the country resulted in lower traffic on the roads.

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

    Furthermore, increase in MOGAS and HSD prices by 26 per cent and 41 per cent since Jun-22 resulted in reduced demand of petroleum products and increase in usage of public transport and car pooling.

    As compared to last year, Pakistan oil sales recorded 26 per cent YoY decline in July 2022 which is owed to drop in MOGAS and HSD Sales by 27 per cent YoY and 38 per cent YoY, respectively. Excluding FO, oil sales were down 31 per cent YoY and 26 per cent MoM in July 2022 to 1.1 million tons.

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

    Among the listed entities, Pakistan State Oil (PSO) sales posted 27 per cent MoM decline to 760k tons (lowest since Feb-22), mainly due to decline in HSD sales by 38 per cent MoM. In terms of market share, PSO market share clocked in at 53 per cent in Jul-22 vs. 52 per cent in July 2021.

    Other companies such as Attock Petroleum (APL) and Shell Pakistan (SHEL) also recorded drop of 29 per cent MoM and 37 per cent MoM to 142k tons and 100k tons, respectively.

    For FY23E, the analysts expect oil sales to drop by 15-20 per cent YoY in FY23E, mainly due to (i) low growth estimated in agriculture sector, (ii) likely decline in auto sales, and (iii) increase in petroleum prices.

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

  • 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…)
  • 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