Tag: petrol pump

  • Petrol pumps to face strict consequences for creating artificial fuel shortage

    Petrol pumps to face strict consequences for creating artificial fuel shortage

    The inflation crisis in the country has been exacerbated by an artificial fuel shortage in Rawalpindi and Islamabad. Petrol and diesel supplies have been cut off at several pumps for two days.

    Petrol pump owners were only supplying petrol of Rs250 for motorcycles and Rs500 for a car. Dealers and pump owners are causing the shortage in order to make extra profit when fuel prices are announced to increase. During the day, 60 per cent of pumps have ceased supplying fuel, rising to 80 per cent at night until midnight. The dealers and owners are waiting for the government to announce a fuel price hike until midnight.

    In response to the fuel shortage, Rawalpindi’s Deputy Commissioner, Shoaib Ali, has ordered assistant commissioners to take immediate action against petrol pumps for not supplying fuel. Despite previous fines, notices, and applications for FIRs against Oil Marketing Companies, the government has been unable to control the artificial petrol crisis in the twin cities of Rawalpindi and Islamabad and across the country. There is speculation that the government will raise fuel prices by Rs20 to Rs30 per liter, leading to over 60 per cent of dealers and pump owners halting supply for two days to increase profits. Despite having tanks filled with petrol, they have stopped supply.

    Assistant Commissioner Syed Asad Abbas informed The News that the DC has ordered strict action against petrol pump owners for causing an artificial fuel shortage for two days. The AC has begun taking action, including sealing pumps and filing FIRs against them. Residents of Rawalpindi and Islamabad have reported a lack of fuel at several petrol pumps for two days, with long lines of motorists observed at Pakistan State Oil (PSO) pumps while other pumps were not providing fuel.

    Motorists were seen frantically searching for fuel as it was unavailable at many petrol pumps in areas such as Tipu Road, Murree Road, Jhanda Chichi, Kutcherry Chowk, Adiala Road, Pirwadhai, Mall Road Saddar, Rawal Road, Jhelum Road, and others. The long lines of vehicles at petrol pumps also caused traffic congestion throughout the city.

    Petrol pump managers, speaking to The News on the condition of anonymity, confirmed that fuel supply had been cut off, with some blaming unknown reasons for the shortage. They warned that if the supply did not resume, motorists could experience severe fuel shortages in the future. Taxi drivers, who rely on daily earnings to support their families, were particularly affected by the situation and expressed strong criticism of the government for failing to provide basic services to the public.

  • 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 may increase by Rs10-17 per litre

    Petrol, diesel prices may increase by Rs10-17 per litre

    Despite the fact that the prices for petroleum products and crude oil have remained largely stable, the price of petrol and diesel may increase by Rs10 to Rs17 per litre as of August 1, 2022. The depreciation of the Pakistani rupee is anticipated to be the cause of the upcoming increase.

    According to The News, sources claim that without taking into account the petroleum levy (PL), a price increase of Rs10 for petrol and Rs16–17 for diesel has been estimated. Additionally, Mogas prices have been forecasted at Rs15 per litre and diesel at Rs23 per litre if the government increases the petroleum levy of Rs5 per litre on gasoline.

    The anticipated increase in POL prices has also been calculated without taking into account the ECC’s Thursday approval of an increase in dealers’ margins (DMs) on POL prices of Rs2.10 per litre for gasoline and Rs2.87 per litre for diesel to Rs7 per litre. Petrol’s price could increase by Rs2.10 to Rs17.10 per litre, and diesel’s price could increase by Rs2.87 to Rs25.87 per litre.

    The increase in dealers’ margin will take effect on August 1, 2022, if the federal cabinet approves this decision in the next two days. Industrial sources reported that the US dollar has increased in value by Rs40 so far this month.

    The current exchange rate against the US dollar is Rs239.9427, and the open market price is Rs246.15. However, they did say that the exact price of gasoline and diesel will depend on the exchange rate in force as of today (Friday).

    Since the price of crude oil as of Thursday settled at $99.4 per barrel, according to independent experts, Pakistani consumers won’t be able to benefit from the decrease in price of POL as a result of the rising exchange rate. The government seems more inclined to impose PL on both gasoline and diesel by Rs5 per litre each.

    Liquefied petroleum gas (LPG) costs also rose by Rs10 per kilogramme on Wednesday without an Oil and Gas Regulatory Authority notification (OGRA).

    The chairman of the LPG Distribution Association (LDAP), Irfan Khokhar, told Profit that a household cylinder now costs Rs2,750 after an increase of Rs150, while the cost of a commercial cylinder has increased by Rs450 to Rs10,438 as a result of the unannounced price increase.

  • Massive hike of Rs83.5 for petrol, Rs119 for diesel proposed by OGRA

    Massive hike of Rs83.5 for petrol, Rs119 for diesel proposed by OGRA

    The Oil and Gas Regulatory Authority (OGRA) suggested the federal government elevate fuel prices by up to Rs83.5 per liter for petrol and Rs119 for diesel.

    A summary to the petroleum division was presented by OGRA for the huge increase in petroleum rates to come into effect on April 16 in Pakistan.

    The proposed raise was calculated using a 70 per cent GST rate plus a Rs30 per liter levy. It is worth noting that the current duty on fuel and diesel is Rs30 per liter, plus 17 per cent GST.

    On the basis of complete levy and taxes, the body has recommended raising petrol prices by Rs83.5 per liter, while diesel prices should be raised by Rs119 per liter.

    According to reports, the OGRA proposed raising the petrol price to Rs21.53 per liter in line with the current tax rate, Rs51.3 for diesel, and Rs77.56 for kerosine oil on the grounds of full tax and levy.

    Read more: Gold prices go up by Rs350 per tola to Rs130,300

    Concerning other oil products, a full tax rate and levy hike of Rs77.31 was suggested for light diesel, Rs36.5 for kerosine oil, and Rs38.89 for light diesel. According to sources, the finance ministry would make the final decision on the OGRA summary after briefing Prime Minister Shehbaz Sharif.