Tag: OMC

  • Pakistan has ample fuel stocks available: PSO denies reports of petrol, diesel shortage

    Pakistan State Oil (PSO) on Friday denied all the rumours about the shortage of fuel reserves and said that there is ample stock of petroleum products in the country.

    The Ministry of Energy and Oil & Gas Regulatory Authority (OGRA), according to the PSO spokesman, is keeping an eye on the general situation regarding product availability by other oil marketing companies to ensure that the nation’s supply chain is maintained smoothly.

    He claimed that PSO would continue to supply the nation with petroleum products on an uninterrupted basis, that there is enough gasoline and diesel in the country, and that 80,000MT and 90,000MT, respectively, of each have arrived at Karachi Port.

    According to the OGRA spokesperson, local oil marketing firms and refineries are also working to meet the demand for petroleum products.

    The Oil Companies Advisory Council (OCAC) requested last week that the federal government step in right away to guarantee the prompt issuing of lines of credit to import petroleum products in order to prevent a fuel scarcity in the nation.

    On behalf of oil marketing companies (OMCs) and refineries, the OCAC sent a letter outlining the difficulties resulting from the opening of letters of credit (LCs) for the import of petroleum products being delayed.

    There haven’t been many oil shipment cancellations as a result of the LCs being closed.

    Mogas, High-Speed Diesel (HSD), and 650,000 MT of crude oil must all be imported into Pakistan on a monthly basis for a total cost of about $1.3 billion.

  • 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.

  • OCAC warns of petrol supply shortages due to roadblocks

    OCAC warns of petrol supply shortages due to roadblocks

    Oil Companies Advisory Council (OCAC) said that oil marketing companies are supplying fuel to retailers but the deliveries are being slowed owing to road blockages in Punjab’s major cities, which could affect deliveries to filling stations.

    It warned provincial authorities in Punjab that the road blockades have severed connectivity between major cities and neighboring areas, affecting fuel supplies inside the province.

    The Oil Companies Advisory Council affirmed that there are sufficient stockpiles of gasoline products throughout the country, including depots in Punjab.

    It also highlighted fears about the current scenario of roadblocks and the rumoured assumption of minimal stocks spreading on numerous platforms and asked the public to refrain from panic buying. Despite the roadblocks, there are enough stockpiles of petrol and high-speed diesel (HSD) in Punjab, and OMCs are constantly working to restock retail outlets on time.

    OCAC expressed its concerns to the Chief Secretary of Punjab, requesting the local administration’s assistance in ensuring the safe and secure transit of tankers from different depots to different petrol outlets across the province till the scenario stabilizes.

  • Global oil prices climb to highest in three weeks

    Oil prices increased on Monday as fears of limited global supply intensified, with the developing crisis in Ukraine raising the risk of more penalties from the West against Russia, the world’s leading exporter.

    Brent futures were up $1.50, or 1.3 per cent, at $113.20 a barrel, while US West Texas Intermediate futures were up 98 cents, or 0.9 per cent, at $107.93 per barrel. Both contracts surged more than 2.5 per cent on April 14, ahead of the Easter weekend holidays, on news that the European Union would phase in a ban on Russian oil imports.

    Last week, EU governments said that the bloc’s executive was working on ideas to ban Russian oil, but officials said Germany was not actively backing an immediate ban.

    Those remarks came before the Ukraine situation escalated over the weekend, with the Ukrainian military defying a Russian demand to lay down arms in the pulverised port of Mariupol on Sunday. Moscow, which refers to its efforts in Ukraine as a “special operation,” said its soldiers had nearly entirely captured the city, with no sign of a truce in sight.

    Read more: Oil prices jump following Russia’s biggest production decline

    Due to sanctions or importers voluntarily rejecting Russian shipments, the International Energy Agency has warned that around 3 million barrels per day (BPD) of Russian oil might be shut in from May onwards.

  • Petroleum sales increase by 23% in March, despite hefty oil prices

    Petroleum product sales rebounded in the last month after a dismal February with Oil marketing companies (OMC) witnessing an increase of 23 per cent in sales of petroleum products on a year-over-year (YoY) basis in March 2022.

    Overall petroleum sales in March 2022, increased to 1.82 million tonnes compared to 1.54 million tonnes in March 2021, as per the data released by Arif Habib Limited.

    The stability comeback shows a 19 per cent increase in overall OMC sales on a month-over-month (MoM) basis.

    OMC volume growth was driven by furnace oil, which climbed by 34 per cent on a YoY basis, followed by HSD volume growth of 29 per cent and MS volume growth of 13 per cent. MoM growth in OMC volumes followed a similar pattern, with FO taking the lead.

    Although the increase in furnace oil volumes was driven by increased furnace oil usage in the power sector due to low gas and Re-Gasified Liquefied Natural Gas (RLNG) availability.

    The increase in HSD volumes was driven by increased demand from the transportation and agriculture sectors and increased usage in generators and the power sector.

    Moreover, the government’s price caps and the additional number of days in March compared to February were the main contributors to MoM growth in diesel and gasoline sales.

    Consequently, petroleum sales increased by 19 per cent on a YOY basis in 9MFY22, with double-digit increases for petroleum products.

    Diesel sales grew by 17 per cent, followed by 16 per cent increase for furnace oil and a 10 per cent growth for motor oil.

    While some are expecting a drop in petroleum sales due to the political turmoil and rising commodity prices, others say that higher oil consumption cannot be overturned as the summer is already here and people are likely to consume more electricity, also that the power sector may switch to furnace oil due to RLNG commitment defaults.

  • Petrol, Diesel prices to remain unchanged till April 15

    The government has decided to maintain the existing prices for petroleum products for the fortnight. Petroleum prices will remain unchanged from April 1 to April 15, as per a statement released by the finance division.

    Petrol is currently priced at Rs149.86 per liter, while diesel, kerosene oil, and light diesel are priced at Rs144.15, Rs125.56, and Rs118.31 per liter, respectively.

    Following an increase in global market prices at the time, the government approved a record-breaking Rs12.03 per liter hike for petrol on February 15. Surprisingly, on February 28, the government decreased POL prices by Rs10 per liter, to lessen the impact of existing inflation on the public.

    The Oil and Gas Regulatory Authority (OGRA), on the other hand, has raised the price of liquefied petroleum gas (LPG) by Rs13 per liter.

    Read More: Nisab amount of zakat deduction set at Rs88,927 for 2022

    After an increase of Rs157 per domestic cylinder and Rs606 per commercial cylinder, the prices of domestic and commercial LPG cylinders have been fixed at Rs2,916 and Rs11,220, respectively, for April 2022.

    Conversely, in the aftermath of the Russia-Ukraine conflict, the international market saw massive volatility as crude oil prices reached new highs.