Tag: Petroleum levy

  • 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.

  • Govt increases petrol price by Rs14.85 to Rs248.74 per liter

    Govt increases petrol price by Rs14.85 to Rs248.74 per liter

    The price of petroleum products has been increased by the federal government on Thursday for the upcoming two weeks, costing the general public nearly Rs15–18 per liter.

    Finance Minister Miftah Ismail said that he was “not supposed” to appear on national television to announce an increase in the cost of petroleum products, but that he did so in response to a directive from Prime Minister Shehbaz Sharif.

    According to the Finance Division’s formal notice, the government has concluded to partially adopt a petroleum levy and revise the current prices of petroleum products “as agreed with the development partners” due to the price fluctuation of oil on the global market and changes in exchange rates.

    As of today (July 1), the cost of gasoline will be Rs248.74 per liter, diesel will be Rs276.54 per liter, kerosene will cost Rs230.26 per liter, and light diesel oil will cost Rs226.15 per liter.

    Starting from July 1, 2022, the new prices will be in effect.

    Product Old prices New prices Increase
    Petrol  Rs233.89 Rs248.74 Rs14.85
    Diesel  Rs263.31 Rs276.54 Rs13.23
    Kerosene oil Rs211.43 Rs230.26 Rs18.83
    Light diesel oil Rs207.47 Rs226.15 Rs18.68
    Latest prices
  • Pakistan aims to enhance Saudi oil facility to $3.6 billion

    Pakistan aims to enhance Saudi oil facility to $3.6 billion

    A spokesperson for the Petroleum Division said that Pakistan is in talks with Saudi Arabia to increase the size of an oil facility on deferred payments from its current $1.2 billion to $3.6 billion.

    According to The News, when former Prime Minister Imran Khan visited Riyadh in October of last year, Saudi Arabia made a $4.2 billion support agreement, which included a $1.2 billion oil loan facility for Pakistan.

    Syed Zakria Ali Shah, joint secretary of international and joint ventures at the Pakistani petroleum division, revealed that the division was attempting to increase the value of its current facility with Saudi Arabia from $1.2 billion to $3.6 billion.

    Pakistan receives monthly oil deliveries worth $100 million under the current Saudi oil facility with deferred payment. Oil prices were low when the deal was struck, but because of their exponential rise, we are currently negotiating with the Saudis to increase their oil facility from $100 million to $300 million every month.

    A member of the Islamic Development Bank (IsDB) group, the International Islamic Trade Finance Corporation (ITFC), Shah claimed Saudi Arabia was also assisting Pakistan in using another existing oil financing facility.

    The last framework agreement for this facility was signed between our economic affairs division and ITFC on February 21, 2022, according to Shah. “The government of Pakistan has this facility for oil and liquefied natural gas (LNG) imports under the framework agreement with ITFC since 2017–18,” he said.

    The facility will cost a total of $4.5 billion over three years, from 2022 to 2024, or roughly $1.5 billion per year on a best-effort basis, the official continued.

  • PM Shehbaz rejects OGRA’s proposal, petrol price to remain unchanged till April 30

    PM Shehbaz rejects OGRA’s proposal, petrol price to remain unchanged till April 30

    Pakistan’s new Prime Minister (PM) Shehbaz Sharif on Friday dismissed the proposal from the Oil and Gas Regulatory Authority (OGRA) to raise the price of petroleum products for the fortnight. The recent decision is aimed at providing relief to the public affected by inflation.

    It is worth noting that the present government’s choice to maintain the same prices will oblige it to provide another substantial subsidy till the end of April 2022.

    Earlier, OGRA suggested to the Finance Division that the price of petrol be increased by Rs21.50 and that of diesel be hiked by Rs51.30 in view of the current petroleum levy and general sales tax (GST).

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

    The authority also proposed a hike of Rs83.50 per liter of petrol and Rs119.88 per liter of diesel considering the federal government’s recommended petroleum levy of Rs30 and 17 per cent GST, as per the official statement.