Tag: currency exchange rates

  • Govt expected to slash petrol prices for second half of January

    Govt expected to slash petrol prices for second half of January

    In a move aimed at providing relief to consumers, the government is expected to reduce petrol prices by more than Rs5 per litre for the second half of January.

    This decision comes as a response to the recent dip in global oil prices, ensuring that the benefits are passed on to the end-users.

    According to the latest pricing estimates until January 12, international petroleum prices have experienced a decline of 1 per cent over the last fortnight. This decrease in global prices may serve as a key factor in the government’s decision to revise the domestic petrol rates.

    On a different note, the price of High-Speed Diesel (HSD) is anticipated to see a slight uptick, with an expected increase of Rs2 per litre. This adjustment is attributed to a modest rise in international diesel prices during the relevant period.

    It’s crucial to highlight that one more session remains before the next pricing update, and the future trajectory of these prices will be contingent on global market movements and exchange rate fluctuations.

    Recalling the decisions from the previous fortnight, the government maintained petrol and diesel prices at Rs267.34 and Rs276.21 per litre, respectively.

    Additionally, there has been a marginal appreciation of the local currency against the USD since the previous fortnight’s pricing decision. The weighted average exchange rate now stands at approximately PKR 281.31 per USD. This development is expected to contribute to the adjustment of petrol prices in the domestic market.

    The official announcement of the revised prices is scheduled for midnight on January 15. The new prices will come into effect immediately and will be applicable for the rest of the month.

  • Govt expected to hike petrol price on Thursday

    Govt expected to hike petrol price on Thursday

    In the final fortnight of November 2023, the per litre price of petrol in Pakistan is projected to experience an increase of Rs3.18, while high-speed diesel (HSD) is anticipated to undergo a reduction of Rs8.30 per litre on Thursday, November 16.

    Sources have indicated that the pricing trajectory of petroleum products is poised for a mixed trend in the latter half of the current month of November 2023.

    The price of petrol is forecasted to rise from Rs283.38 per litre to Rs286.56 per litre, marking an uptick of Rs3.18 per litre.

    Correspondingly, the cost of HSD/diesel is expected to decrease by Rs8.30 per litre, moving from Rs303.18 per litre to Rs 294.88 per litre.

    Additionally, the price of kerosene oil is projected to witness a decline of Rs5.61 per litre, transitioning from Rs211.03 per litre to Rs205.42 per litre.

    Furthermore, the price of light diesel oil (LDO) is set to experience a reduction of Rs8.33 per litre, shifting from Rs189.46 per litre to Rs181.13 per litre.

    These price adjustments are calculated based on current government taxes and the prevailing US dollar exchange rate, as per informed sources.

    According to Profit, the government may uphold the price of petrol due to outstanding forex adjustments, while a reduction of Rs10 per litre is expected for diesel (HSD).

    Notably, starting from 1st November 2023, the government has imposed a petroleum levy (PL) of Rs60 per litre on petrol and diesel, alongside receiving an Inland Freight Equalization Margin (IFEM) of Rs7.71 per litre on petrol and Rs0.60 per litre on diesel.

    Additionally, the Dealers’ Margin (inclusive of extra margin) on petrol and diesel presently stands at Rs8.64 per litre.

    Similarly, the margin for Oil Marketing Companies is fixed at Rs7.87 per litre.

    Furthermore, the Distributors’ Margin (inclusive of extra margin) on diesel is currently set at Rs8.12 per litre, and on petrol, it is Rs7.87 per litre, effective from 1st November 2023.

    On 1st November, the government maintained the prices of petrol and diesel at Rs283.38 per litre and Rs303.18 per litre, respectively.

    Simultaneously, the price of kerosene oil witnessed a reduction of Rs3.82 per litre, establishing the new price at Rs211.03 per litre.

    The price of LDO was also decreased by Rs3.40 per litre, fixing the new price of LDO at Rs189.46 per litre for the first half of November 2023.

  • Petrol price may drop by Rs41 per litre: AHL

    Petrol price may drop by Rs41 per litre: AHL

    Petroleum prices may decrease in the upcoming announcement due to a significant drop in global oil prices and the strengthening of the Pakistani rupee against the US dollar, according to Arif Habib Limited (AHL), a brokerage house.

    In the next fortnightly pricing cycle starting on October 16, 2023, AHL predicts a reduction of Rs41 per litre for petrol and Rs19 per litre for diesel in local prices.

    AHL’s projection is based on several factors. International oil prices have fallen considerably in the past week due to concerns about demand, a stronger US dollar, inflationary pressures, and increased oil supplies. 

    The prices of WTI, Brent, and Arab Light have dropped by approximately 9 per cent to 11 per cent compared to the previous fortnightly averages. International gasoline (MS) prices have plummeted by 15 per cent to $84.3 per barrel, while high-speed diesel (HSD) prices have dipped by 10 per cent to $110.6 per barrel compared to the previous fortnightly averages.

    Additionally, the Pakistani rupee has appreciated by 2.7 per cent against the US dollar, standing at 283.87 compared to the previous fortnightly average of 291.65. 

    AHL’s calculations, factoring in these price changes and the assumption of stable international prices and currency rates over the next 10 days, suggest that local petrol and diesel prices are expected to decrease by Rs41 per litre and Rs19 per litre starting on October 16, 2023.

    AHL also mentioned that in the previous fortnightly pricing, there was an exchange rate adjustment of Rs11.9 per litre for MS and a negative adjustment of Rs2.8 per litre for HSD. 

    Even assuming similar currency adjustments for MS and no adjustment for HSD in the upcoming fortnightly prices, AHL anticipates that MS and HSD prices will decrease by Rs28.6 per litre and Rs19.3 per litre, respectively.

    In terms of inflation, AHL revised its October CPI inflation estimate to 27.5 per cent. Last week, the interim government announced a reduction of Rs8 per litre for MS and Rs11 per litre for HSD, resulting in new prices of 323.38 and 318.18 per litre for petrol and diesel, respectively, effective from October 1.

  • Google’s technical glitch causes panic with incorrect US dollar rate of Rs186 instead of Rs286

    Google’s technical glitch causes panic with incorrect US dollar rate of Rs186 instead of Rs286

    Late Tuesday night, a technical malfunction on Google Search caused a momentary panic among investors and observers as the value of the US dollar plunged in comparison to the Pakistani rupee.

    The unexpected drop to Rs186.73 bewildered many, especially considering that the local currency hadn’t experienced a significant rebound recently.

    It was later discovered that the decline in currency exchange rates was a result of a technical problem with the search engine on the website, leading to a temporary plummet in the rates.

    This incident is not the first of its kind and has occurred multiple times in the past, leaving users puzzled by massive declines in dollar rates.

    The glitch and its impact

    On Tuesday, June 6, the interbank market closed with the Pakistani rupee at Rs286.56 against the US dollar, while it remained above Rs300 in the open market. However, due to the technical glitch on Google Search, the rates displayed on the platform inaccurately dropped to Rs186.73.

    The sudden decline surprised and concerned individuals who were monitoring the exchange rates, as it deviated significantly from the prevailing values. Fortunately, the issue was promptly identified and rectified, restoring the rates to Rs286.72.

    Recurring glitches on Google Search

    This incident marks yet another occurrence of a glitch affecting the world’s largest search engine and impacting currency exchange rates. In July of the previous year, the rates displayed on Google Search had crashed to Rs207.10, a stark contrast to the rates issued by the State Bank of Pakistan.

    According to the central bank, the rupee had closed at 236.02 against the US dollar in the interbank market. The repetition of such glitches raises concerns about the accuracy and reliability of the information provided by Google Search in matters of global financial significance.

    User Reactions and Social Media Response: The recent glitch on Google Search didn’t go unnoticed by users, with several individuals taking to Twitter to highlight the issue. One user tweeted, “Last night, the dollar crashed on Google,” emphasising the impact the technical malfunction had on the perceived value of the US dollar.

    Such reactions on social media platforms highlight the widespread reliance on search engines for real-time financial data and the potential consequences of inaccuracies caused by technical glitches.

    While the glitch was rectified, it highlights the recurring nature of such incidents on the world’s largest search engine, casting doubts on the accuracy of the financial information provided.

    As reliance on search engines for real-time data increases, it becomes imperative for platforms like Google to ensure the reliability and integrity of the information they display to prevent unwarranted panic or misinformation in the financial markets.

  • Exchange companies suggest higher US dollar rate to increase remittances

    Exchange companies suggest higher US dollar rate to increase remittances

    The government has been advised by the Exchange Companies Association of Pakistan (ECAP) to “set” the dollar rate to lessen currency market volatility as the country fights a severe economic crisis and declining foreign exchange reserves.

    The general secretary of ECAP Zafar Paracha said in a statement on Monday, “It is advised to fix the rupee/dollar exchange rate for export-import bills and remittances”. He further said these remittance proceeds could be received by banks and money changers at a fixed rate of Rs240 per dollar.

    Pakistani rupee closed at Rs228.34 per US dollar, compared with the previous close of Rs228.15 in the interbank market. In the open market, the local unit was trading at Rs238.75 against the greenback.

    Paracha suggested the government to set the rate of Rs240 per dollar for overseas Pakistanis and for inward remittance.

    He expects that by making the change, the official channel would be strengthened, remittances would increase, Hundi/Hawala would decline, and eventually, the grey market would vanish.

    According to Paracha, the exchange rate between the dollar and the local currency has hit Rs267 to Rs270. The offer could be made at Rs228 against/ the dollar in order to obtain exporters’ revenues. Additionally, the rate for importers would be determined by the weighted average of the exporter and home remittance rates. He said that it would help remittances and exporters.

    It will boost the nation’s foreign exchange reserve, encourage exporters to bring dollars, and strengthen the exchange companies’ remittances division.

    The country received $14.1 billion in remittances during the first six months (July-December) of the current fiscal year, a decline of 11.1 per cent from a year earlier.

    As of January 6, Pakistan’s foreign exchange reserves at the State Bank of Pakistan fell by $1.2 billion to $4.3 billion, just enough to fund three weeks’ worth of imports.

    Due to significant repayments of foreign debt and a lack of external funding, which have severely reduced Pakistan’s foreign reserves and resulted in ongoing dollar shortages, the country is currently facing a balance of payments crisis.