Following the last update on May 1, the daily petroleum prices in Pakistan for May 2023 have remained unchanged, offering stability to consumers. The current prices will be effective until May 15, 2023.
(more…)Tag: petroleum products
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Pakistan’s import of petroleum products sees a 20% decline in 9MFY23
According to data released by the Pakistan Bureau of Statistics (PBS), the import of petroleum products has declined by 20% during the first nine months (July-March) of the current fiscal year 2022-2023.
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Petroleum import bill falls to $11.88 billion in 8MFY23
KARACHI: Petroleum import bill fell to $11.88 billion in first eight months (July – February) of fiscal year 2022/2023, according to data released by Pakistan Bureau of Statistics (PBS).
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Pakistan petroleum sales plunge by 19pc in 7MFY23
KARACHI: Pakistan sales of petroleum products have plunged by 19 per cent during 7MFY23 first seven months (July – January) fiscal year 2022-2023.
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Russia agrees to provide oil at discounted rate to Pakistan: minister
ISLAMABAD: Russia has agreed to provide oil at discounted rate to Pakistan, said Minister of State for Petroleum Dr Musadik Malik on Monday.
He termed his recent visit to Russia ‘very successful’ as the host country, in principle, had decided to provide crude oil, refined petrol and diesel to Pakistan at a discounted rate.
READ MORE: Pakistan unable to bear heavy energy import bill amid challenges to economy: PM
“In addition, negotiations with private sector companies of Russia have been initiated for procurement of Liquefied Natural Gas (LNG), while talks for long term contracts with public sector companies of Russia have also been initiated to get LNG from their new plants,” he said at a press conference.
During the visit, he said fruitful discussions were also held on gas pipeline projects including establishing of Pakistan Stream Gas Pipeline, commonly known North-South (Lahore-Karachi) Gas Pipeline, and another a ‘big gas pipeline’ to get the commodity from Russian hydrocarbon deposits.
READ MORE: SBP denies restricting import payment for petroleum products
Musadik Malik said an inter-governmental delegation of Russia, led by its Energy Minister, would visit Pakistan by January-mid [next month] to make progress on oil and gas sale-purchase agreements between the two countries.
Commenting on the current gas supply situation in the country, the minister said the local gas production was witnessing around 8-10 per cent decline annually and despite all these odds, the government had arranged extra gas for months of November, December and January as compared to the same months of the last year.
He said an effective monitoring system of gas supply to domestic consumers was in place, under which the Petroleum Division kept a vigil eye on the demand and supply of the commodity.
READ MORE: New petroleum prices in Pakistan effective from December 01, 2022
Musadik Malik said the gas companies had been directed to ensure gas supply, especially during ‘breakfast, lunch and dinner’ preparation timings i.e. 6-9 a.m., 12-2 p.m. and 6-9 p.m.
“The incumbent government is providing extra gas as compared to the last year, and monitoring the supply situation regularly,” he added.
However, he said there was a problem of poor infrastructure which created a gas pressure issue for the remote areas, which was being rectified on priority basis.
To bridge the demand and supply gap, the minister said the gas companies were providing more than 20,000 tons Liquefied Petroleum Gas (LPG) per month in the areas where gas-pressure issue and shortage prevailed.
READ MORE: Shell Pakistan signs ABHI for voluntary carbon compensation offer
He disclosed that Iran had announced to give Pakistan LPG worth two million pounds as ‘assistance,’ for which all formalities have been completed. He said the additional LPG would help ensure better gas supply to domestic consumers in December.
The minister was of the view that the government believed in providing sufficient energy to the industrial sector as it would help move the economic wheel at a fast pace, thus generating employment opportunities for youth and increasing the country’s exports.
Accordingly, he said the government was utilizing all available options and contacting different countries including Central Asian States to meet its energy requirements.
He highlighted the importance of exploiting the country’s indigenous oil and gas potential, saying that two new policies related to tight gas and revival of old hydrocarbon wells, were being worked out.
Musadik Malik said the country needed 8-10 per cent addition in energy efficiency, if it wanted to improve Gross Domestic Product (GDP) at the rate of 5-6 per cent annually.
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Petroleum sales decrease by 22% in four months of 2022-2023
KARACHI: Sales of petroleum products have decreased by 22 per cent during first four months (July – October) of fiscal year 2022-2023, according to data released by Oil Companies Advisory Council (OCAC) on Tuesday.
The date showed the sales of petroleum products fell to 6.15 million tons during first four months of the current fiscal year as compared with 7.85 million tons in the corresponding months of the last year.
READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue
Petrol sales fell by 18 per cent to 2.54 million tons during July – October 2022 as compared with 3.11 million tons in the same period last year.
A massive decline of 26 per cent in sales of high speed diesel (HSD) has been seen during the period under review. The sales of HSD plummeted to 2.17 million tons during first four months of the current fiscal year as compared with 2.93 million tons in the same period of the last year. Similarly, furnace oil sales recorded a decline of 26 per cent to 1.19 million tons as compared with 1.60 million tons.
READ MORE: OGDCL announces huge oil discovery at Attock
Analysts at Arif Habib Limited said that total petroleum sales settled at 1.66 million tons in October 2022, depicting a decline of 17 per cent Year on Year (YoY) due to higher petroleum prices, lower FO-based power generation, and a plunge in automobile sales.
Motor spirit (MS) witnessed a fall of 11 per cent YoY, to settle at 0.68 million tons in October 2022. Similarly, High Speed Diesel (HSD) volumes shrunk by 15 per cent YoY, to arrive at 0.71 million in October 2022. Whereas, Furnace Oil (FO) sales volumes plummeted by 37 per cent YoY in October 2022, to clock in at 0.20 million tons.
Meanwhile, petroleum offtake showcased a MoM growth of 9 per cent during October 2022 amid mobility across the country post floods, commencement of sowing for Rabi season, and a decrease in MS and HSD prices.
READ MORE: Electricity withholding tax not applicable on ATL domestic consumers
Volumes of MS and HSD reported a jump of 8 per cent and 37 per cent MoM, respectively. However, FO sales dropped by 33 per cent MoM in October 2022.
Company-wise analysis depicts that PSO’s offtake displayed a decline of 18 per cent YoY in October 2022 which was majorly contributed by a plunge in sales of MS, HSD and FO by 18 per cent, 11 per cent and 43 per cent YoY, respectively.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
Similarly, sales of APL and SHEL plummeted by 16 per cent and 21 per cent YoY, respectively due to fall in sales of MS and HSD. Whereas, HASCOL reported a growth of 46 per cent YoY given higher MS and HSD sales.
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FBR collects Rs459 billion as sales tax on POL products in TY 2022
The Federal Board of Revenue (FBR) has reported a substantial growth in sales tax collection on the import of Petroleum, Oil, and Lubricants (POL) products during the tax year 2022, reaching an impressive Rs459 billion.
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Pakistan customs seals over 1,600 illegal petrol pumps during FY22
KARACHI: Pakistan Customs has sealed over 1,600 petrol pumps across the country in its drive against smuggled petroleum products.
The Federal Board of Revenue (FBR) in its performance report for the fiscal year 2021/2022 stated that Customs authorities initiated country wide operations against illegal POL outlets during the fiscal year.
READ MORE: FBR directs IR offices to avoid recovery in pending appeals
FBR said that during the operation Customs sealed more than 1600 illegal outlets with criminal proceedings against owners. This initiative helped increase in legitimate imports of POL products.
It said Pakistan Customs is the guardian of Pakistan borders against movement of contra band goods and is facilitator of bona fide trade.
READ MORE: FBR directs 85 big retailers to integrate businesses
Customs provides a major source of revenue to the Government of Pakistan in the form of taxes levied on the goods traded across the borders. It also helps to protect the domestic industry, discourage consumptions of luxury goods and stimulate development in the under-developed areas.
Following initiatives taken by the Customs Administration during the TY 2022:
First Ever Counter Smuggling Policy Laid out which is an excellent example of interagency co-operation.
Highest Ever Counter Smuggling Seizures made (FY 2021-22: Rs. 66 billion).
READ MORE: FBR issues one million tax notices to enforce compliance
Countrywide Operation against Illegal POL outlets (sealing of more than 1600 illegal outlets with criminal proceedings against owners), through which, legitimate imports of POL products saw sharp surge as compared to previous financial year.
Opening Pakistan to Central Asian Republics through simplification of Transit Procedures and Automated Clearance. Pak-Uzbekistan Transit Agreement has been finalized and deliberations have been started.
Ease of Doing Business Indicators improved by 28 percent from 136 to 108 in 2021, which is an “unprecedented improvement” resulting into efficient Cross Border Trade.
READ MORE: FBR unveils plan to achieve Rs7.47 trillion revenue collection target
Pakistan Single Window Act, 2021 enacted and its rules notified and expected to be roll-out in the coming months.
WeBOC has now been implemented at all sea-ports, dry-ports and land border stations.
Online Payments have been introduced for the traders wherein levy-able duty and taxes on import of goods are paid online through digital banking.
Risk Management System is part of WeBOC clearance which is continuously upgraded from time to time.
Automated Duty Drawback Payment System: In order to facilitate the exporters, the manual rebate approval system has been replaced with RMS based, fully automated / system-based processing of duty drawback payment without involving any human intervention. Under the automated system, the exports Good Declaration is termed as Rebate request.
Administrative Measures like auctions, recoveries, valuations etc have resulted in generation of Rs. 25 billion in FY 2021-22.
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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
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ECC approves petroleum dealer margin at Rs7/liter
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved to fix petroleum dealers margin at Rs7 per liter for petrol and high speed diesel.
The decision has been taken at a meeting of the ECC presided over by Finance Minister Miftah Ismail on Thursday.
The Petroleum Division submitted a summary on revision of Oil Marketing Companies (OMCs) and dealers margins on petroleum products.
READ MORE: Pakistan allows release of banned items stuck up at ports
It was informed that the existing margins were fixed in December, 2021 and Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries and utility bills, etc.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Planning, Development and Special Initiatives Prof. Ahsan Iqbal, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Power , Khurram Dastgir Khan, Federal Minister for National Food Security and Research Chaudhary Tariq Bashir Cheema, Shahid Khaqan Abbasi – MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Rana Ihsan Afzal, Coordinator to the PM on Commerce and Industry, Coordinator to the PM on Economy, Bial Azhar Kayani, Federal Secretaries and senior officers attended the meeting.
READ MORE: SBP makes permission mandatory for motor car import
Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of 4th International Wheat Tender 2022 opened on 25th July, 2022.
It was informed that Trading Corporation of Pakistan (TCP) issued 4th tender on 19-05-2022 for securing quantity of 200,000 MT of imported wheat on CFR basis.
The tender was opened on 25-07-2022 wherein six (06) international suppliers participated, out of which 05 offered rates. The ECC after detailed discussion approved the lowest bid offered by M/s Falconbridge FZLLC@ US$ 407.49/MT CFR bulk on sight LC basis with direction to TCP to negotiate with the Russian authorities to procure wheat on lower rate subject to confirmation of the ECC.
Ministry of Water Resources submitted a summary on compensation package for the Chinese causalities at Dasu Hydro Power project.
READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022
The ECC decided that the amount of compensation/ good will package will remain the same as per ECC’s earlier decision dated January 21,2022 ( i.e US$ 11.6 million) and approved disbursement of the compensation/goodwill amount directly to the company M/s China Gezhouba Group International Engineering Co. Ltd (CGGC) through Ministry of Foreign Affairs.
The Ministry of Industries and Production submitted a summary on issues faced by Fatima Fertilizer (Sheikhupura Plant) and Agritech.
Both the SNGPL based plants are operated by provisioning of RLNG on cost sharing basis. Gas rate for operation of these plants is worked out on the basis of Variable Contribution Margin (VCM).
Due to price increase in fuel prices and other factors, both plants have approached M/o I&P for revision of VCM and capping of GST at the price paid by the plants.
READ MORE: CMOs worry over power outages, 100% cash margin on imports
The ECC after discussion approved the proposal to ensure compliance with the earlier decision of the ECC and the Federal Cabinet of shifting both the plants to indigenous gas.
The committee further directed Ministries of Petroleum, Finance, National Food Security and Industries & production to work out the gas price/VCM for the Fertilizers. The ECC also decided that Sales tax may be charged on the actual price of the gas being paid by the company.