Tag: petroleum prices

Pakistan hikes petroleum prices up to 50.71% in a week

ISLAMABAD: The Pakistan government led by a coalition government has sharply increased petroleum prices by up to 50.71 per cent in just one week.

Finance Minister Miftah Ismail on Thursday made second announcement in just span of one week to increase the prices of petroleum products around Rs30 per liter each time.

The new petroleum prices per liter effective from June 03, 2022 are:

Description	Price on May 26, 2022	Price on June 03, 2022	Difference	Percent increase
Petrol	Rs149.86	Rs209.86	Rs60	40%
High Speed Diesel	Rs144.15	Rs204.15	Rs60	41.62%
Kerosene oil	Rs129.56	Rs181.94	Rs52.38	45%
Light Speed Diesel	Rs118.31	Rs178.31	Rs60	50.71%

A statement issued by the finance division on Thursday stated that crude oil and petroleum prices are increasing substantially in the international market.

Maintaining POL prices at the hugely subsidized rates results in increasing both budget deficit and imports.

The subsidized rates of these POL products also poses supply chain risk, the finance division said.

The current fiscal position and market prices leave no option for the government but to increase the prices. Therefore, the government has decided to increase the prices of petroleum products with effect from June 03, 2022 keeping petroleum levy and sales tax at zero per cent.

“We note that the government is still losing money on petrol, high speed diesel and light diesel oil,” the finance division added.

The previous PTI government in February 2022 decided to freeze the prices of petroleum products at the level mentioned above in the table on May 26, 2022 up to June 30, 2022. However, former Prime Minister Imran Khan was removed from the office through a no-confidence motion on April 10, 2022.

Since then, the new coalition government also maintained the prices till May 26, 2022. But under pressure of International Monetary Fund (IMF) for the release of next tranche of around $1 billion the government had no option but to increase the prices.

Analysts said that the significant hike in prices of petroleum products would bring a storm of inflation as POL prices are directly linked to all the prices of essential and non-essential items.

June 3, 2022

New petroleum prices in Pakistan from June 03, 2022

KARACHI: The government has announced further increase in prices of petroleum products by Rs30 per liter each from 12:00 AM of June 03, 2022.

Finance Minister Miftah Ismail in a press conference on Thursday announced a significant increase in petroleum prices by Rs30 per liter each.

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

It is second consecutive increase in a week as the country increased the prices Rs60 per liter on all petroleum products during past seven days.

READ MORE: Pakistan increases petroleum prices by Rs30 per liter

The prices of petroleum products from June 03, 2022 shall be: Petrol at Rs209.86 per; High Speed Diesel at Rs204.15 per liter; kerosene oil at Rs181.94 per liter; and light diesel oil at Rs178.31 per liter.

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

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

However, the finance ministry in a statement issued on May 31, 2022 stated that the government had decided to keep the prices of petroleum products unchanged with an aim to provide relief to the consumers, despite revenue losses due to rising petroleum prices globally.

“With a view to provide maximum relief to the consumers, the Prime Minister of Pakistan has directed that the current prices of petroleum products as notified on 27th May, 2022 shall remain unchanged, despite revenue losses due to rising petroleum prices globally,” Finance ministry said in a statement issued here.

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

June 2, 2022
Petroleum prices in Pakistan from June 01, 2022

KARACHI: The government of Pakistan on Tuesday decided to keep the petroleum prices unchanged for the next fortnight despite revenue losses due to rising petroleum prices globally.

The prices of petroleum products from June 01, 2022 shall be: Petrol at Rs179.86 per; High Speed Diesel at Rs174.15 per liter; kerosene oil at Rs155.56 per liter; and light diesel oil at Rs148.31 per liter.

READ MORE: Pakistan increases petroleum prices by Rs30 per liter

Earlier, the government on May 26, 2022 announced a massive increase in prices of all petroleum products by Rs30/- per liter in order to satisfy International Monetary Fund (IMF) for release of $1 billion tranche.

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

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

However, the finance ministry in a statement issued on May 31, 2022 stated that the government had decided to keep the prices of petroleum products unchanged with an aim to provide relief to the consumers, despite revenue losses due to rising petroleum prices globally.

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

“With a view to provide maximum relief to the consumers, the Prime Minister of Pakistan has directed that the current prices of petroleum products as notified on 27th May, 2022 shall remain unchanged, despite revenue losses due to rising petroleum prices globally,” Finance ministry said in a statement issued here.

READ MORE: New government keeps petroleum prices unchanged

May 31, 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

May 27, 2022
Pakistan increases petroleum prices by Rs30 per liter

ISLAMABAD: Pakistan on Thursday announced a massive increase in prices of all petroleum products by Rs30/- per liter in order to satisfy International Monetary Fund (IMF) for release of $1 billion tranche.

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

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

Ismail said that the government had decided to increase the prices of petrol, high speed diesel and kerosene oil by Rs30/- liter each effective from midnight 12:00 AM on May 27, 2022.

A day earlier, the IMF refused to continue its talks on bailout package under Extended Fund Facility (EFF) until Pakistan removed the subsidy on fuel and energy.

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

Former PTI government in February 2022 decided to grant subsidy on petroleum products to ease inflationary pressure on masses.

With the announcement the prices of petroleum products would be: Petrol Rs179.86 per liter; diesel Rs184.15; and kerosene oil Rs156.56.

READ MORE: New government keeps petroleum prices unchanged

On February 28, 2022, former Prime Minister Imran Khan announced reduction in prices of petroleum products and freeze the prices till June 30, 2022. This decision came with announce of multi-billion rupees subsidy to keep the fuel prices lower.

This decision was strongly criticized by the legislators, who are now sitting on the treasury benches. The present government despite strong opposition to the decision to grant of subsidy on the petroleum prices, has no option but to keep the prices unchanged during its tenure of more than a month.

However, after the refusal of the IMF to continue talks without removal of subsidy, the PML-N led government passed on heavy burden to the masses.

READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

May 26, 2022
ECC approves Rs55.48bn for price differential claims of OMCs

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved an amount of Rs55.48 billion for payment of price differential claims of Oil Marketing Companies (OMCs).

Federal Minister for Finance and Revenue Miftah Ismail presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

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

Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance & Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

Petroleum Division submitted a summary for reimbursement of Price Differential Claims (PDCs) of Oil Marketing Companies (OMCs) and Refineries.

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

The price differential is to be paid to the Oil Marketing Companies/Refineries by the Government as a subsidy in the wake of Government’s decision to keep the petroleum products’ prices fixed at the level notified on March 01, 2022.

The ECC after deliberation approved supplementary grant of Rs. 55.48 billion for disbursement of PDC to OMCs/Refineries for the first fortnight of May, 2022.

READ MORE: New government keeps petroleum prices unchanged

Due to continuously rising trend of oil prices in the international market, the quantum of subsidy has been on higher side.

Ministry of Industries and Production submitted a summary on import of Urea and presented that the government intends to create better stock for Urea fertilizer to ensure continuity of Urea supply during next financial year and requested for allowing import of Urea from international market in order to stabilize the local market.

The ECC after discussion allowed Trading Corporation of Pakistan (TCP) to explore the possibility of import of 200,000 MT of Urea on G2G basis and on deferred payment.

READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

May 16, 2022
Govt. decides to continue subsidy on petroleum prices

ISLAMABAD: The coalition government led by PML-N has decided to continue the subsidy on prices of petroleum products in order to prevent people from high prices.

Finance Minister Miftah Ismail on Sunday May 15, 2022 announced to maintain the prices of petroleum products at the same level, which were announced by the previous PTI government.

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

On February 28, 2022, former Prime Minister Imran Khan announced reduction in prices of petroleum products and freeze the prices till June 30, 2022. This decision came with announce of multi-billion rupees subsidy to keep the fuel prices lower.

This decision was strongly criticized by the legislators, who are now sitting on the treasury benches. The present government despite strong opposition to the decision to grant of subsidy on the petroleum prices, has no option but to keep the prices unchanged during its tenure of more than a month.

READ MORE: New government keeps petroleum prices unchanged

According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

Miftah Ismail on Sunday said despite increasing prices of petroleum products Prime Minister Shehbaz Sharif had decided not to transfer the burden of price hike on masses.

The decision has been taken at a time when the government is going to discuss loan program under Extended Fund Facility (EFF) with the International Monetary Fund (IMF). Under this program, the government has already agreed to raise the prices of petroleum products by removing subsidies.

READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

The IMF issued the following statement on April 24, 2022:

“We had very productive meetings with the Finance Minister of Pakistan Miftah Ismail over Pakistan’s economic developments and policies under the Extended Fund Facility (EFF) program.

“We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review.

“Based on the constructive discussions with the authorities in Washington, the IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.

“The authorities have also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives.”

READ MORE: Pakistan raises petrol price to record high at Rs160/liter

Miftah Ismail in its latest statement said: “PTI government has destroyed economy of the country.”

The Minister said agriculture sector was badly ignored and resultantly Pakistan imported wheat worth of six hundred million dollars last year. He said this year wheat worth of $1.5 billion will have to be imported.

Miftah Ismail said prices of flour soared up from 35 rupees per kg to 80 rupees per kg in last four years.

Talking about sugar price, Miftah Ismail said that government is providing cheap sugar and it has directed to further decrease the price of commodity. He also said the government will not import sugar this year.

May 16, 2022
Pakistan surrenders to IMF, agrees to remove subsidies

KARACHI: Pakistan government has agreed to remove subsidies on various items granted by the previous government in order to continue loan program under International Monetary Fund (IMF).

The IMF issued the following statement on April 24, 2022:

“We had very productive meetings with the Finance Minister of Pakistan Miftah Ismail over Pakistan’s economic developments and policies under the Extended Fund Facility (EFF) program.

“We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review.

READ MORE: Tax amnesty launched for setting up new industrial units

“Based on the constructive discussions with the authorities in Washington, the IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.

“The authorities have also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives.”

The previous PTI government had announced to provide massive relief to the public by deciding not to increase the petroleum prices and electricity tariff.

READ MORE: IMF to agree on Pakistan’s industrial promotion package

Imran Khan, chairman of Pakistan Tehreek I Insaaf and recently removed from the slot of Prime Minister through a no-confidence vote on February 28, 2022 announced reduction in prices of petroleum products and electricity tariff and further announced to freeze the reduced rates till upcoming federal budget 2022/2023.

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

The previous government provided the relief by slashing prices of petroleum and electricity to provide massive relief to the people.

The government is absorbing losses of billions of rupee every month due to subsidies supply of petroleum products and electricity.

The new government, although, retained the prices fixed by the previous government for the fortnight started on April 16, 2022. However, recent development clearly indicated that the present government had agreed to the IMF to withdraw the incentives given to the public of the Pakistan.

READ MORE: New government keeps petroleum prices unchanged

Analysts believed that withdrawal of subsidy will be inflationary.

April 25, 2022
New government keeps petroleum prices unchanged

ISLAMABAD: The new government – formed by leading political parties – on Friday decided to keep the prices of petroleum products unchanged for next fortnight.

The previous PTI government had decided to freeze the price of petrol at Rs150 per liter till June 30, 2022.

Prime Minister Muhammad Shehbaz Sharif has rejected the Oil and Gas Regulatory Authority’s (OGRA) proposal to hike prices of petroleum products in the country.

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

It was announced by the Prime Minister while addressing an Iftar Dinner at Prime Minister House in Islamabad on Friday tonight.

The previous government on February 28, 2022 decided to reduce the prices of petroleum products despite the high international oil prices in the wake of Russia-Ukraine war.

The finance division had issued the notification to cut the prices of petrol and diesel by Rs10 per liter each from March 01, 2022.

READ MORE: Pakistan raises petrol price to record high at Rs160/liter

According to a statement issued by the finance division, the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

READ MORE; Petroleum prices kept unchanged for next fortnight

In the fortnightly review on February 28, 2022, the Oil and Gas Regulatory Authority (OGRA) recommended Rs10 per liter increase in the prices of petroleum products.

According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

While retaining the prices at current level, Shahbaz Sharif said the government will bear burden of increase in prices of petroleum products itself instead of shifting it to the masses.

He said that the Prime Minister Office will now be working as Pakistan House where officers from across the country will serve.

The prime minister said consultation is underway over formation of federal cabinet and it will soon be fianlized.

April 15, 2022
Pakistan cuts petroleum prices amid Russia-Ukraine War

ISLAMABAD: Pakistan on Monday decided to reduce the prices of petroleum products despite the high international oil prices in the wake of Russia-Ukraine war.

The finance division issued the notification to cut the prices of petrol and diesel by Rs10 per liter each from March 01, 2022.

READ MORE: Pakistan raises petrol price to record high at Rs160/liter

According to a statement issued by the finance division, the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

READ MORE; Petroleum prices kept unchanged for next fortnight

In the fortnightly review on February 28, 2022, the Oil and Gas Regulatory Authority (OGRA) recommended Rs10 per liter increase in the prices of petroleum products.

“The prime minister has not only rejected the increase but also announced to decrease the prices of petroleum products by Rs10 per liter in his address to the nation in order to provide maximum relief to the consumers, despite the limited fiscal space,” it added.

READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

READ MORE: Prices of all POL products increased to wish New Year

The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

March 1, 2022