Tag: diesel

  • Pakistan has sufficient petrol and diesel to meet domestic demand: Petroleum Division

    Pakistan has sufficient petrol and diesel to meet domestic demand: Petroleum Division

    The Petroleum Division said on Tuesday that the country has sufficient petrol and High-Speed Diesel (HSD) in stock to meet domestic demand after allowing Oil Marketing Companies (OMCs) to recover Rs10 per litre on HSD for the next two months (November-December 2022) by raising the premium limit to $15 per barrel.

    The OCAC had cautioned the federal government about a likely shortage of petrol and HSD in the coming days due to limited imports and limited local availability.

    According to the OCAC’s letter to the Oil and Gas Regulatory Authority (Ogra), the gap is due to limited supply and excessive premiums on fuel stocks on the international market.

    The Economic Coordination Committee (ECC), led by Finance Minister Ishaq Dar, approved the summary proposed by the Ministry of Energy on Friday (Petroleum Division).

    The ministry aimed to secure sustainable HSD imports for November-December 2022 by loading the country’s risk factors of $6 bbl, with an upper limit premium of $15 to the OMCs for pricing computation.

  • Oil industry warns OGRA of looming petrol, diesel shortage

    Oil industry warns OGRA of looming petrol, diesel shortage

    Due to limited imports and constrained domestic supplies, the oil industry has warned the government that the country may witness a shortage of petrol and high-speed diesel (HSD) in the upcoming days.

    The Oil & Gas Regulatory Authority (OGRA) has been written about the shortfall by the Oil Companies Advisory Council (OCAC), an organisation that represents the oil industry.

    The Oil Marketing Companies (OMCs) were given permission to import motor spirit/petrol and HSD in accordance with their demand in the product availability review of products for the month of November 2022, the OCAC stated. This decision followed considerable consideration.

    A shortage of 210,000 MT of HSD and 147,000 MT of gasoline was calculated during the product review. Due to restricted supply on the global market and extremely expensive premiums, it was noted at the meeting that HSD imports in November would be difficult. As a result, only PSO has so far reserved supplies from Flow Petroleum of 220,000 MT and 10,000 MT.

    Alarmingly, though, fuel import that corresponds to the expected sales volume and the stock cover has also not been scheduled. According to the OCAC letter, the importers were supposed to finalise the import plan, but as of now, there is a gap in the import plan.

    The conference with representatives from the industry held on November 1 also brought up this crucial issue, but no clear guarantees have been obtained in writing from the importing OMCs, it stated.

    According to Geo, the OMCs, who were expected to bring imports for use in October, got their shipments in the final week of the month; hence, the product wasn’t ready for usage during the month it was intended for. Similar to how OMCs who were permitted to import goods the month before for usage the following month had already used the shipments, the letter observed.

  • Petroleum prices to remain unchanged for next fortnight

    Petroleum prices to remain unchanged for next fortnight

    For the upcoming two weeks, the government has decided to keep petroleum product prices unchanged.

    Ishaq Dar, the finance minister, made the announcement during a press conference.

    This means that the price of petrol will remain unchanged at Rs224.80 per liter, high-speed diesel (HSD) at Rs235.30, light diesel oil (LDO) Rs186.50, while kerosene will be sold at Rs191.83.

    It is important to note that the administration did not change the prices during the most recent fortnightly review. The government refused to lower the price of gasoline for the general population by raising the petroleum development levy (PDL) by Rs14.84.

    Dar also stated that the government will clear the outstanding letters of credit (LCs) after speaking with the State Bank of Pakistan (SBP), with the cap increasing to $100,000 from the existing $50,000 as of November 1.

    Despite the relief, locals are forced to buy petrol for their daily commute at outrageously high costs. Contrarily, it is anticipated that CNG stations in Punjab and Sindh may be closed for longer than four months, which has made the issues of the populace much worse.

  • Top driving techniques for reducing fuel consumption

    Top driving techniques for reducing fuel consumption

    The price of petrol in Pakistan is unforgivably high and motorists have no recourse since fuel is the basic and continuous expense for gasoline-powered vehicles. Still, the vast majority of auto owners want to lower their monthly fuel costs.

    Fuel economy may not be a huge concern if an individual rarely drives a car for short trips, but regular commuting and lengthy excursions make it challenging to save fuel.

    Here are a few tried-and-true tips that are well-known to increase mileage:

    Go easy on the accelerator

    This entails just accelerating the car when necessary. Frequent braking and engine revving increase fuel consumption whereas keeping the speed of the vehicle steady reduces fuel consumption. This is why you get greater mileage on long routes or motorways.

    It is strongly advised to maintain a low RPM (preferably less than 2,500), and if your automobile has an eco-mode, it would be helpful to frequently use it. Depending on the vehicle, this mode is especially made to improve fuel efficiency and can reduce fuel consumption by up to 15%.

    Watch your speed

    If your car has a small engine (under 1300cc), it will use more gasoline when travelling at speeds of 100 km/h or greater. To provide higher output, the engine must push harder, which raises the RPM and petrol usage.

    Bigger engines may generate greater power at lower RPMs, hence they are often unaffected by higher speeds as they require less power and repeated flooring.

    Be aware that hybrid engines are less affected by this as they may employ electric motors to maintain a high power output while consuming little fuel.

    Drive smartly

    A motorist may handle traffic more effectively by keeping an eye on the surroundings, maintaining safe distances, and analysing the driving habits of other drivers. By doing this, the motorist may prepare for obstacles including roadblocks, red lights, road closures, and bumps.

    Additionally, it aids in intelligent acceleration and deceleration. Ultimately, smart driving is one of the best ways to increase safety and reduce fuel consumption.

    Avoid idling

    This is the most basic fuel-saving advice offered by automotive specialists. It is clear that idling for an extended period of time wastes fuel. In addition, warming up a car shouldn’t take more than 60 seconds.

    Use AC when needed

    When the air conditioner (AC) is on, cars use more petrol. More fuel is saved by just using the AC when necessary.

    Still, driving with your windows down in the summer only to save on fuel is not advised, especially on highways. The automobile experiences higher drag when the windows are rolled down, especially at high speeds. As a result, the automobile encounters higher air resistance and requires more engine power to maintain the same speed.

    This is why while driving at faster speeds, such as on a highway, the driver would be wise to put on the AC rather than rolling down the windows.

    Remove excess weight

    Many automobile owners ignore this underrated advice. If your trunk is empty, it might not make much of a difference, but if you have heavy items within your car, this could be the cause of your excessive fuel usage.

    The engine is put under more stress as the automobile gets heavier because it requires more power to move ahead, which increases fuel consumption.

    Perform regular maintenance

    Every automobile owner’s primary priority should be maintenance. Regularly having your automobile serviced is crucial since there may be many underlying problems and components under the hood that you are unable to inspect or maintain.

  • Reduction in POL prices without IMF approval is a ‘reckless’ decision, says Miftah Ismail

    Reduction in POL prices without IMF approval is a ‘reckless’ decision, says Miftah Ismail

    Pakistan’s former finance minister Miftah Ismail has called the coalition government’s decision to maintain the petroleum development levy (PDL) this month unchanged “reckless”.

    However, he maintained that what the earlier PTI administration did to the nation was “unforgivable.”

    Shaukat Tarin, the leader of the PTI and a former finance minister, had tweeted about the PMLN’s -alleged doublespeak, to which Ismail responded.

    “We were blamed for violating IMF conditions. According to Miftah sahib, they did not wait to get clearance from MD IMF before announcing the fuel prices. Clear doublespeak,” he tweeted.

    https://twitter.com/shaukat_tarin/status/1576568757056512000?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1576568757056512000%7Ctwgr%5E5e775af4ab091b03900a542aeb8050d970a7d429%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.dawn.com%2Fnews%2F1713254

    Ismail replied that the PTI administration had in fact broken the terms of the IMF deal.

    “You agreed to increase sales tax to 17 per cent but reduced it to zero. You agreed to raise petrol levy every month by Rs4 to Rs30 but brought it to zero. You agreed to not give amnesty but gave one anyway,” he said, in reference to the previous administration’s decision to temporarily freeze fuel prices.

    Ismail argued that the subsidy was “unfounded and unsustainable” and that the PTI nearly put the nation into bankruptcy. He continued by saying that, while serving as finance minister, he had visited the IMF and prevented the nation’s default.

    “Not increasing PDL this month without IMF approval is reckless, but what PTI did with our economy was unforgivable,” he insisted.

    Ismail brought up the fact that his administration had not sought IMF approval before freezing the petroleum charge for the second time in two days.

    Ismail claimed that when Ahad Cheema, the establishment adviser to Prime Minister Shehbaz Sharif, requested him to contact the IMF managing director if gasoline prices could be held for three months, “I said that I would die but not ask this.” Ismail was speaking at an event in Karachi on Saturday.

    “In any case … I asked the MD if we could freeze the tax for three months. The answer did not arrive and the government unilaterally did it. So may God have mercy.”

    On Tuesday, September 27, Ismail resigned from his position as finance minister to make room for Ishaq Dar. Three days later, on Friday, the administration decided to lower petrol costs (Sept 30).

    Petrol costs now cost Rs224.80 per litre, down from Rs237.43 previously. This reduction in price amounts to Rs12.63. High-speed diesel (HSD) is now available at Rs12.13 less per litre, at Rs235.30 instead of Rs247.43. Kerosene’s cost per litre dropped from Rs202.02 to Rs191.83 by Rs10.19. Light diesel oil (LDO) was reduced in price from Rs197.28 to Rs186.50 per litre by Rs10.78.

    By lowering the petroleum development fee on gasoline by Rs5 per litre to Rs32.42, the government lost money. On HSD, the price was raised to Rs12.58 by an additional Rs5 per litre.

    According to DAWN, the government currently charges Rs12.58 per litre PDL for HSD, Rs15 for kerosene, Rs10 for LDO, and Rs30 for High Octane Blending Component. Additionally, the cost of gasoline and HSD includes a Rs22 per litre customs fee.

  • Petrol price may go down by Rs7.24 to Rs230.19 per liter

    According to industry projections, the ex-depot cost of petrol has declined by Rs7.24 per litre to Rs230.19 per litre for the upcoming fortnight from the current price of Rs237.43 per litre, as reported by The News.

    Considering recent reports, this might lead to a fall in the price of petrol by Rs7.24 per litre and diesel by Rs16.61 per litre in Pakistan at the upcoming fortnightly review if the government does not raise taxes to offset the effects of the declining worldwide market.

    Expected new prices

    In comparison to the present price of Rs247.43 per litre, the ex-depot price of diesel has fallen by Rs16.61 to Rs230.82 per litre for the upcoming two weeks.

    In comparison to the current fortnight, the ex-depot price of light diesel decreased by Rs10.87 to Rs186.41 per litre.

    Kerosene’s ex-depot price fell from Rs197.28 per litre to Rs187.82 per litre, a decrease of Rs14.20.

    The oil sector bases its prices on the current taxes levied by the government. Petroleum goods are exempt from general sales tax (GST), which is charged at a rate of Rs37.42 for petrol and Rs7.58 for diesel per litre.

    There has been a considerable decline in international oil prices, but it is unclear if the government would pass the impact through to the public or offset it by increasing taxes.

  • Petrol, diesel prices likely to go down as International oil prices fall

    Petrol, diesel prices likely to go down as International oil prices fall

    Due to a dramatic drop in oil rates on global markets, POL prices are expected to fall by Rs15 from October 1st.

    According to experts, the price of diesel could drop by Rs15 and the price of petrol could drop by Rs5 for the next two weeks, reports Geo.

    They stated that the new price would be determined based on the price of oil on the global markets through September 29.

    On Monday, oil prices fell for a second day due to concerns about weaker fuel consumption from an anticipated global recession brought on by rising global interest rates as well as the fact that non-dollar buyers of crude are less able to purchase it due to the strengthening US dollar.

    At 06:40 GMT, the price of Brent crude futures for November settlement fell $1.35, or 1.57 per cent, to $84.80 per barrel. The contract dropped to $84.51, its lowest price since January 14.

    The November delivery price of US West Texas Intermediate (WTI) oil futures fell $1.15, or 1.46 per cent, to $77.59 a barrel. WTI dropped to $77.21, its lowest level since January 6.

    The government is required to levy a fee on petroleum products as part of an agreement with the International Monetary Fund. The application of a petroleum levy on gasoline is currently set at Rs37.50 per litre and on diesel at Rs7.50 per litre, according to a notification released on September 1.

  • Govt increases petrol price instead of decreasing, new rate stands at Rs237.43 per litre

    Govt increases petrol price instead of decreasing, new rate stands at Rs237.43 per litre

    The government officially announced the amended prices for petroleum products on Wednesday after a delay of almost a week, notifying consumers of an increase of Rs1.45 in the price of petrol.

    According to the notification, the price of gasoline has gone up from Rs235.98 to Rs237.43, while the price of high-speed diesel (HSD) has remained the same at Rs247.43.

    Light diesel oil’s price has dropped from Rs201.54 to Rs197.28 by Rs4.26, and kerosene’s price has dropped from Rs210.32 to Rs202.02 by Rs8.3.

    According to initial reports, the cost of petroleum products were expected to decrease from Rs235.98 per litre to Rs226.36 per litre on Friday, September 16, after a reduction of Rs9.62 per litre for the next two weeks.

    The new petroleum prices were expected to be revealed on September 16, but the administration postponed the announcement.

  • Govt may announce revised petrol prices today

    Govt may announce revised petrol prices today

    After Prime Minister (PM) Shehbaz Sharif returns to Pakistan from Uzbekistan today, the federal government is expected to announce revised petroleum product prices.

    Amid these rumours, fuel pump owners have stopped buying petroleum goods, according to Geo News.

    Reportedly, the Prime Minister’s Office has notified the Finance Ministry of the POL price announcement.

    According to sources, the Oil and Gas Regulatory Authority (OGRA) did not advise lowering gasoline and diesel prices in its brief given to the finance division. Instead, a minor increase in POL costs is predicted. However, the final decision on POL prices is likely today.

    Previously, it was expected that the price of petrol would fall from Rs235.98 per litre to Rs226.36 after a Rs9.62 per litre reduction over the next two weeks.

    Moreover, the price of diesel is likely to rise by Rs3.04 per litre, raising the rate from Rs247.26 to Rs250.30 during the specified period.

    KP Finance and Health Minister Taimur Khan Jhagra took to Twitter to criticise the government’s delay in announcing revised POL pricing, sparking a debate on the social media platform.

  • Petrol price may go down by Rs9.63 per litre for the next fortnight

    The price of petrol is expected to decrease by Rs9.63 per litre for the next two weeks, while diesel prices are anticipated to increase.

    According to reports, the Oil and Gas Regulatory Authority (OGRA) has advised lowering gasoline prices for the final fifteen days of the current month, September.

    However, a final decision about increased petroleum pricing would only be made after receiving Prime Minister Shehbaz Sharif’s approval.

    For the specified period, the cost of diesel is probably going to go up by Rs3.04 per litre, bringing the price from Rs247.26 per litre to Rs250.30.

    The federal government announced an increase in the price of gasoline and diesel for the first two weeks of September on August 31.

    The price of gasoline increased by Rs2.07 to reach Rs235.98 per litre, while the price of high-speed diesel increased by Rs2.99 to reach Rs247.43.

    According to Express Tribune, various strategies have reportedly been used by the government and OGRA to maintain low petroleum prices in order to avert political reaction.