Pkrevenue.com

Tag: petroleum prices

  • 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

  • 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…)
  • 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

  • Petroleum prices in Pakistan may rise from July 01, 2022

    Petroleum prices in Pakistan may rise from July 01, 2022

    KARACHI: The prices of petroleum products in Pakistan are likely to increase due to planned implementation of petroleum levy and sales tax from July 01, 2022.

    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.

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

    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.

    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 03, 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 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.

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

    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.

    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.”

    READ MORE: Petroleum levy to generate Rs750 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.

    New prices of petroleum products with effect from June 16, 2022 are 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.

  • 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