Tag: fuel prices

  • Petrol and diesel prices predicted to rise in February

    Petrol and diesel prices predicted to rise in February

    In response to the recent surge in global oil prices, the government is anticipated to raise petrol and diesel prices by Rs11 and Rs6 per litre, respectively, for the first half of February. 

    The significant 11 per cent and 25 per cent increases in the premium on petrol and diesel contribute to the upward adjustment. 

    Recent pricing estimates until January 26 reveal a 5 per cent rise in finished petroleum prices to $87.7 per barrel and a 1 per cent gain in finished diesel prices to $97.4 per barrel.

    Despite a slight appreciation of the local currency, which stands at a weighted average rate of around PKR 279.87 per USD since the last pricing decision, it remains insufficient to counterbalance the substantial international price hikes. 

    It’s crucial to note that there are three more sessions before the next pricing update, and final prices will be contingent on global market movements and exchange rate fluctuations.

    The government is set to unveil the revised prices at midnight on January 31, 2024, and these adjustments will be effective for the first half of February. 

    Notably, in the previous fortnight, the government reduced petrol prices by Rs8 per litre to Rs259.34 while keeping diesel prices steady at Rs276.21 per litre.

  • Petrol, diesel price in Pakistan to remain unchanged for first two weeks of January 2024

    Petrol, diesel price in Pakistan to remain unchanged for first two weeks of January 2024

    The interim government has chosen to uphold the current petrol price in Pakistan for the initial two weeks of January 2024.

    This decision is attributed to the absence of any significant decrease in global crude prices and amidst a stable exchange rate between the Pakistani rupee and the US dollar.

    The diesel price will also stay unaltered for the upcoming fortnight.

    As a result of this development, the prices for petrol and diesel will persist at Rs267.34 and Rs276.21 per liter, respectively.

    These revised prices will be effective from January 1, 2024.

    Earlier in the month, the government had reduced the prices of petrol and diesel by Rs14 and Rs13.5, respectively, following the bi-weekly revision.

  • Govt may cut petrol price by more than Rs10 per litre

    Govt may cut petrol price by more than Rs10 per litre

    The government is poised to provide significant relief by potentially reducing petrol and diesel prices by Rs13 and Rs15 per litre, respectively, in the upcoming fortnightly pricing update.

    This anticipated reduction is attributed to a noteworthy downturn in international petroleum and diesel prices over the past fortnight.

    The stability of the local currency at a weighted average of approximately PKR 284.33 per USD further contributes to this potential relief. 

    Current estimates as of December 2008 reveal a global decline in petrol and diesel prices by 5.44 per cent and 5.6 per cent, reaching $94.95 and $100.05 per barrel, respectively.

    As the next pricing update is still a week away, the future trajectory of these prices hinges on global market movements and exchange rate fluctuations. 

    Notably, in the preceding fortnight, the government maintained the petrol price at Rs281.34 while reducing the HSD price by Rs7 to Rs289.71 per litre.

  • Govt maintains petrol price at Rs281.34, cuts diesel price by Rs7 per litre 

    Govt maintains petrol price at Rs281.34, cuts diesel price by Rs7 per litre 

    On Thursday, the caretaker government announced its decision to maintain the current petrol price at Rs281.34 per litre while implementing a reduction of Rs7 per litre for high-speed diesel (HSD) for the upcoming two weeks. 

    As per the official notification from the finance ministry, the revised price for high-speed diesel will be Rs289.71 per litre starting on December 1. 

    Additionally, the prices for kerosene and light diesel oil have decreased by Rs3.82 and Rs4.52, respectively. 

    Following these adjustments, kerosene will now be priced at Rs201.16 per litre, and light diesel oil will be available at Rs175.93 per litre. 

    This decision comes in response to factors such as an IMF review and the recent global decline in oil prices. 

    Notably, the postponement of a ministerial meeting by Opec+ (the Organisation of the Petroleum Exporting Countries and allies, including Russia) to November 30 contributed to a midweek tumble in global oil prices. 

    Brent crude futures experienced a 0.4 per cent decline, down 37 cents to $80.21 per barrel, while US West Texas Intermediate (WTI) crude futures lost 0.4 per cent, down 29 cents to $75.25. 

  • Slight relief for consumers: Petrol price dropped by Rs2.04 per litre

    Slight relief for consumers: Petrol price dropped by Rs2.04 per litre

    The government announced a reduction in the prices of petrol and high-speed diesel (HSD) by Rs2.04 and Rs6.47 per litre, respectively, for the upcoming fortnight.

    According to a notification from the Ministry of Finance, the revised prices for petrol and HSD now stand at Rs281.34 and Rs296.71.

    Simultaneously, there was a decrease in the prices of kerosene oil and light-diesel oil by Rs6.05 and Rs9.01 per litre, bringing their new prices to Rs204.98 and Rs180.45, respectively.

    Prior to this decision, officials had anticipated a more substantial decline in the prices of petrol and HSD, ranging from Rs8 to Rs10 per litre.
    This projection was primarily based on the recent drop in international prices.

    However, despite the decrease in global prices for both HSD and petrol over the past two weeks, the rupee experienced depreciation against the dollar in the same period, mitigating the benefit of lower international prices for consumers.

    According to officials, the international prices indicated a reduction of about $9 per barrel on average for HSD, decreasing from approximately $113 to $104 during the week.

    Similarly, the price of petrol saw a decline of one dollar, moving from $91 to $90. Conversely, the rupee depreciated by Rs6 against the dollar, falling from Rs280 to Rs286.

  • 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.

  • Govt decides not to reduce petrol, diesel prices

    Govt decides not to reduce petrol, diesel prices

    The caretaker government announced on Tuesday that petrol and diesel prices would remain unchanged until November 15. 

    Furthermore, the government reduced the prices of kerosene and light-speed diesel by Rs 3.82 and Rs3.40 per litre. Kerosene and light-speed diesel will now be priced at Rs211.03 and Rs189.46 per litre, respectively.

    In the previous review on October 15, the caretaker government had announced a reduction of Rs 40 and Rs15 in petrol and diesel prices, bringing them to Rs283.38 and Rs303.18 per litre, respectively. 

    This adjustment was made in response to the continuous appreciation of the local currency against the greenback and fluctuations in international petroleum product prices.

  • Islamabad’s public transport fares reduced by 10% 

    Islamabad’s public transport fares reduced by 10% 

    With immediate effect, public transport fares in Islamabad have been reduced by 10 per cent in direct response to the recent decline in petroleum prices.  

    This decision emerged following a meeting convened by the Secretary of the Islamabad Transport Authority, involving consultations with representatives from the Drivers Welfare Association as well as transportation business owners. 

    This fare reduction is poised to make a significant impact, encompassing 23 distinct routes crisscrossing the capital city of Islamabad. It serves as a vital measure to alleviate the financial burden borne by commuters in the region. 

    Notably, this benevolent gesture is mirrored in Lahore, where transport operators have also undertaken fare reductions for both long-haul and short-haul journeys. 

    Furthermore, as part of its ongoing commitment to ease the economic challenges facing the populace amidst escalating inflation, the caretaker government took decisive action on Sunday.  

    This action involved a substantial reduction in petrol price by a notable Rs40 per litre and an equally substantial reduction of Rs15 per litre for high-speed diesel (HSD) over the forthcoming two weeks.  

  • Petroleum prices expected to decline as rupee gains ground against US dollar 

    Petroleum prices expected to decline as rupee gains ground against US dollar 

    As reported by Geo News on Saturday, there’s an expectation that starting on October 1st, petroleum prices will see a decrease due to the stability of the Pakistani rupee (PKR) against the US dollar (USD). This shift is also attributed to a decline in international market prices. 

    The final decision on these petroleum prices will be made by the Ministry of Finance following consultations with interim Prime Minister Anwaar-ul-Haq Kakar. 

    In recent news, the Oil and Gas Regulatory Authority (OGRA) cautioned against prematurely speculating about petroleum product pricing. This comes after federal ministers suggested that rates for petroleum, oil, and lubricants (POL) might decrease in the next fortnightly review. 

    Earlier statements by Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi hinted at a potential drop in POL prices, thanks to the recent strengthening of the Pakistani rupee against the US dollar. 

    Over the past two weeks, the Pakistani rupee has gained about Rs19 against the US dollar. This is significant because Pakistan, as a net importer of POL products, conducts transactions in US dollars. 

    In the previous fortnightly review, the caretaker government had raised petrol prices by more than Rs26 per litre and diesel prices by over Rs17 per litre, reaching record highs at Rs331.38 and Rs329.18 per litre, respectively. 

    OGRA emphasised that the pricing of petroleum products in Pakistan depends on international market trends and the exchange rate between the US dollar and the Pakistani rupee. While international petroleum prices have risen recently, the exchange rate between the US dollar and the Pakistani rupee has improved. 

    However, OGRA pointed out that there’s still one week left before the official announcement of new prices. So, any speculations about price changes during this period are speculative and could disrupt the smooth operation of the oil supply chain. 

  • Federal ministers predict petrol price reduction, oil authority cautions against speculation

    Federal ministers predict petrol price reduction, oil authority cautions against speculation

    The Oil and Gas Regulatory Authority (OGRA) has cautioned against engaging in speculative discussions regarding the future pricing of petroleum products. This advisory comes in response to recent statements made by federal ministers suggesting potential reductions in Petroleum Oil and Lubricants (POL) rates during the upcoming fortnightly review.

    Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi had asserted last week that POL prices might see a decrease, attributing this possibility to the strengthening of the Pakistani rupee against the US dollar.

    Over the past two weeks, the rupee has appreciated by approximately Rs16 against the dollar, prompting these statements. It’s important to note that Pakistan, as a petroleum importer, conducts its transactions in US dollars.

    In the preceding fortnightly review, the caretaker government had substantially raised the prices of petrol and diesel, setting historic highs at Rs331.38 and Rs329.18 per litre, respectively.

    In light of the ministers’ remarks, OGRA has released a statement reiterating the importance of refraining from speculative discourse concerning petroleum product prices. The regulatory authority clarified that these prices in Pakistan are primarily influenced by international market rates and the prevailing dollar-to-ruble exchange rate.

    OGRA pointed out that recent times have witnessed an upsurge in global petroleum prices, while the rupee has demonstrated an improvement against the dollar. However, OGRA emphasised that there is still one week remaining before the announcement of the new pricing structure.

    The statement from OGRA further underscores that any conjecture regarding price fluctuations during this interim period is highly speculative and could potentially disrupt the efficient functioning of the petroleum supply chain.