Petrol shortage and prices in Pakistan in 2020 [PM Imran rejects proposed price increase for Sep]

PM only on social media. He talks big but zero delivery. bas bharke sun lu is se. Me yeh kar du ga me wo kar du ga. Two years of power and he has nothing but fake promises and speeches. It looks like his aim was to somehow become PM of Pakistan by manipulating Pakistani people. He had no idea how he will actually live to his fake promises.


1 crore jobs and 5 million houses still leave me stunned. Our nation really deserve this for buying into these fake promises.

Imma end your whole posting career right now. Agar himmat hai tu aek aek ka jawab dehna.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Loans repaid by PTI govt in 22 months: RS 5000 Billion<br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276827608697712645?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">Amount borrowed from State Bank in 22 months: NIL<br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276827810221391873?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>


<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">Panagahs established by PTI govt in 22 months: 200+<br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276828004556189696?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">Effective diplomacy saved Pakistan from paying $1.2bn penalty in Karkey case.<br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276828461433335810?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">10 billion tree Tsunami project praised across the globe and being replicated by other developed counties. <br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276829434331480072?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">Sehat Sahoolat card being provided to every family in KPK. Providing Insurance coverage worth 1 million per family annually. <br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276829763001352194?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">Rs 150 Billion+ distributed among the needy through the Ehsas Emergency Cash program.<br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276830112957313029?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">Funding provided for a number of DAM projects. Work on most has commenced and would be completed after PTI's tenure finishes. Because a leader thinks of the next generation. Not the next election.<br><br>Lakin! <br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276830906033082368?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>


<blockquote class="twitter-tweet" data-conversation="none"><p lang="en" dir="ltr">7 million families will receive Sehat Sahulat Card in Punjab during the current year.<br><br>4.6 million families have already received it. <br><br>All these families would have insurance coverage of Rs 1 million annually.<br><br>PM <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> Isteefa dou!</p>— Socially Isolated (@Umar_Khan10) <a href="https://twitter.com/Umar_Khan10/status/1276841547200430081?ref_src=twsrc%5Etfw">June 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>




Chalo shabash patwari ab cut lo.... you have shown your auqaat.
 
I live overseas, therefore I don't feel qualified to pass personal judgement on PTI.

However what I can say for sure is that my entire family back in Pakistan is unanimous in regretting their decisions of voting for PTI in 2018 (and 2013)!! :(
 
But Imran’s entire political career pivoted around his self-righteous claim that he is not among the ‘all politicians’ and that he is different.

He told us that unlike others, he will live up to his promises in his election campaign, and that is what created his cult-following and people started dancing on the streets because they thought Imran will bring change.

He has pulled wool over the eyes of his cult-followers and exploited their naivety.

For the people who truly believed in all his promises, then yes there will be disappointment. However come next election the case he has to make is that he is better than the other options. not whether he kept all his promises. And he has to ask the Pakistani people are you better off than you were 5 years ago? If the answer is yes, then he will win. If the answer is no then he will lose.
 
But Imran’s entire political career pivoted around his self-righteous claim that he is not among the ‘all politicians’ and that he is different.

He told us that unlike others, he will live up to his promises in his election campaign, and that is what created his cult-following and people started dancing on the streets because they thought Imran will bring change.

He has pulled wool over the eyes of his cult-followers and exploited their naivety.

He could still make a come back for another tenure and convince people how people didn't allow him to work. Like Nawaz Sharif once called the Khalai Makhlooq.

If he dissolves the assembly it would make his case even stronger.
 
PTI ministers,and supporters be like:

-Health infrastructure collapsing -> People are not listening to us!
-Sugar crisis -> Mafia is responsible!
-Fake PIA pilots -> Previous government did political appointments in the PIA!
-Sky-high price of medicines - Hoarders!
-Rupee devaluation -> Nawaz stole all the money!
-Inflation -> Nawaz bought flats with public money!

PTI supporters are blaming everybody except their own na-laik government.

It seems to me like Imran Khan does not realize he IS in the government and the buck stops at him!
 
ISLAMABAD: Amid controversies swirling around petroleum crisis and pricing, the Oil and Gas Regulatory Authority (Ogra) has found fault with official handling of the demand and supply mechanism, leading to countrywide shortages, hoarding and black marketing of oil by market players.

In a detailed report submitted to the federal cabinet, Ogra also challenged the position of the Ministry of Energy Petroleum Division (MEPD) that as the regulator it was responsible for ensuring 20-day stock at all times. The regulator quoted a series of rules and laws to claim that maintenance of stock and smooth supply throughout the country was the responsibility of the petroleum division and the director general oil under the MEPD.

The regulator has also attached a number of its communications to the MEPD, warning and highlighting the build-up to the supply crisis and how chronologically the office of directorate general oil (DGOil) had been changing various decisions. The report also contains an updated status on implementation of the cabinet decisions on June 9 in which Ogra had reported penalties imposed on nine oil marketing companies (OMCs) for violation of rules.

The report said the petroleum secretary was on March 20 clearly showed petrol stocks for 15 days and diesel for 43 days with an advice for “instant decision making regarding demand/supply”. On March 25, the MEPD asked all OMCs and refineries “to cancel their planned imports”. The very next day (March 26), the MEPD moved a summary which was approved on Mar*ch 27 by the Cabinet Commi*ttee on Energy (CCoE) to rationalise oil imports, closure of three Karachi-based refineries and curtailing production to 60-70 per cent of local crude by Parco and Attock refineries.

This was done without Ogra’s participation or comment. Based on the CCoE decision, operation of three refineries was stopped while imports were already banned, thereby curtailing the country’s supply sources.

On April 4, the MEPD reported to Ogra that OMCs were not uplifting products from Attock, Pakistan and Parco refineries which should be asked to “maintain 20-day mandatory stocks of HSD [high speed diesel] to meet the demand during harvesting season”. On April 6, all OMCs were asked to uplift product from refineries and build the required stocks. The same day, all refineries were asked to operate at 60-70pc throughput to meet higher demand, particularly of diesel as imports were already banned.

Ogra said it put on record on April 10 its “reservations” over sharing of the CCoE summary after the decisions had already been taken and pointed out “contradiction in the decision taken by CCoE on MEPD summary to operate with two refineries and fresh decision taken by MEPD to operate all refineries”.

The MEPD acknowledged Ogra’s concerns on April 16 and appreciated the latter’s actions for mandatory storage/stocks and said the decisions questioned by Ogra were taken to rationalise all operational issues relating to oil supply and logistic chain and it was no final decision to operate Parco and Attock only but had since been ratified by the cabinet, hence final. Both the MEPD and Ogra pursued the market players to build mandatory stocks.

On April 28, the MEPD lifted the ban on import of diesel and petrol with the condition that importing OMCs will also uplift 20pc of their cargoes from local refineries. This decision was also not conveyed to Ogra.

On May 28, the MEPD moved a summary to change pricing mechanism and sought postponement of price change from June 1 to June 16 to provide “an incentive to OMCs to import product at current PSO price and thereby avoid inventory loss”. Ogra opposed the proposal the next day as it believed the “prevention of inventory losses will be at the expense of national exchequer/consumers” and it would put a national company — Pakistan State Oil — at disadvantage in following procurement rules.

On June 2, Ogra reported the stock position and urged the MEPD to get the schedule of imports and local production under the May 13 decision by the product review meeting changed and aligned to respond to market demand and ensure sufficient stocks and uninterrupted supplies. It also asked the MEPD to arrange additional cargoes for imports to mitigate the situation.

Citing a series of rules, law and evidences, the regulator said: “It is crystal clear that as per applicable policy and law/rules, MEPD holds the exclusive responsibility to anticipate any such situation and take the remedial measures i.e. increasing local refineries’ production up to maximum and ask/ensure additional imports by OMCs to avoid the crisis”.

Moreover, the import of petroleum products was “patently a policy issue involving foreign exchange, which exclusively rests with the federal government of Pakistan i.e. the Ministry of Finance and line Ministry of Energy & Petroleum Division”, Ogra noted.

It said that under rule 7 of Pakistan Petroleum (Refining, Blending and Marketing) Rules, every refinery was required to submit its half-yearly production programme to DGOil of the MEPD which had the powers under rule 8 to approve such a programme or change it, if required, under rule 9. Under rule 10, the DGOil is also to regulate the refineries to process crude oil or feed stocks from domestic or foreign source.

Under rule 13, the DGOil is also to specify and ensure maintenance of crude oil stocks by refineries and products by OMCs under rule 30A. Rule 30B empowered the DGOil and the MEPD to “access the deficit volumes of petroleum products and assign to OMCs specific volume to be imported to meet the demand”.

Also, it put on record that the MEPD regularly holds product review meetings on a monthly basis with all stakeholders — OMCs, refineries, Ogra, power plants, PIA, Railways, etc — “as MEPD is the authority for ensuring the product availability in the country”. The meetings review all the aspects and assessments — local production, carryover stock, change in consumption behaviour, etc — and then finalise “the Product Import Plan that include details of each and every ship, cargo, date of arrival”, which is approved by the DGOil.

Ogra’s responsibility was limited to creation of storages by companies before allowing them marketing and sale of products. The regulator said the country had a total storage capacity of 1.45 million tonnes of petrol and diesel and almost half of that (751,000 tonnes) storage capacity had been built over the last four years with an investment of Rs75 billion.

The responsibility of filling this storage capacity with product stock for 20 days was the responsibility of the MEPD. “Neither it is the mandate of Ogra to stop/curtail local refineries’ production or to ban imports, nor there exists any decision of Ogra in this regard whatsoever,” the regulator concluded, putting the entire blame on MEPD for the petroleum crisis.

https://www.dawn.com/news/1565882/ogra-finds-fault-with-handling-of-oil-crisis
 
When petrol prices increase in India the justification given by sanghis is that it is done to pay off pending loans. When you ask for proof, then show random tweets by other sanghis. I hope the same isn’t happening in Pakistan.
 
All politicians make big claims on what they will do. But in reality they are limited in what they can possibly achieve. Majority of Pakistanis know this, and they did not vote for him because of his promises, but because they wanted change.


Like Trump said he going to build a wall and he will make Mexico pay for it. No one really believed he would do that.

Same way majority of PTI supporters did not believe that Imran Khan would bring back 200 Billion Dollars, or create 5 million houses, or not go to the IMF.

So it was a jumla? Refreshing to notice the similarity between the PM of humsaaya mulk.
 
ISLAMABAD: Amid controversies swirling around petroleum crisis and pricing, the Oil and Gas Regulatory Authority (Ogra) has found fault with official handling of the demand and supply mechanism, leading to countrywide shortages, hoarding and black marketing of oil by market players.

In a detailed report submitted to the federal cabinet, Ogra also challenged the position of the Ministry of Energy Petroleum Division (MEPD) that as the regulator it was responsible for ensuring 20-day stock at all times. The regulator quoted a series of rules and laws to claim that maintenance of stock and smooth supply throughout the country was the responsibility of the petroleum division and the director general oil under the MEPD.

The regulator has also attached a number of its communications to the MEPD, warning and highlighting the build-up to the supply crisis and how chronologically the office of directorate general oil (DGOil) had been changing various decisions. The report also contains an updated status on implementation of the cabinet decisions on June 9 in which Ogra had reported penalties imposed on nine oil marketing companies (OMCs) for violation of rules.

The report said the petroleum secretary was on March 20 clearly showed petrol stocks for 15 days and diesel for 43 days with an advice for “instant decision making regarding demand/supply”. On March 25, the MEPD asked all OMCs and refineries “to cancel their planned imports”. The very next day (March 26), the MEPD moved a summary which was approved on Mar*ch 27 by the Cabinet Commi*ttee on Energy (CCoE) to rationalise oil imports, closure of three Karachi-based refineries and curtailing production to 60-70 per cent of local crude by Parco and Attock refineries.

This was done without Ogra’s participation or comment. Based on the CCoE decision, operation of three refineries was stopped while imports were already banned, thereby curtailing the country’s supply sources.

On April 4, the MEPD reported to Ogra that OMCs were not uplifting products from Attock, Pakistan and Parco refineries which should be asked to “maintain 20-day mandatory stocks of HSD [high speed diesel] to meet the demand during harvesting season”. On April 6, all OMCs were asked to uplift product from refineries and build the required stocks. The same day, all refineries were asked to operate at 60-70pc throughput to meet higher demand, particularly of diesel as imports were already banned.

Ogra said it put on record on April 10 its “reservations” over sharing of the CCoE summary after the decisions had already been taken and pointed out “contradiction in the decision taken by CCoE on MEPD summary to operate with two refineries and fresh decision taken by MEPD to operate all refineries”.

The MEPD acknowledged Ogra’s concerns on April 16 and appreciated the latter’s actions for mandatory storage/stocks and said the decisions questioned by Ogra were taken to rationalise all operational issues relating to oil supply and logistic chain and it was no final decision to operate Parco and Attock only but had since been ratified by the cabinet, hence final. Both the MEPD and Ogra pursued the market players to build mandatory stocks.

On April 28, the MEPD lifted the ban on import of diesel and petrol with the condition that importing OMCs will also uplift 20pc of their cargoes from local refineries. This decision was also not conveyed to Ogra.

On May 28, the MEPD moved a summary to change pricing mechanism and sought postponement of price change from June 1 to June 16 to provide “an incentive to OMCs to import product at current PSO price and thereby avoid inventory loss”. Ogra opposed the proposal the next day as it believed the “prevention of inventory losses will be at the expense of national exchequer/consumers” and it would put a national company — Pakistan State Oil — at disadvantage in following procurement rules.

On June 2, Ogra reported the stock position and urged the MEPD to get the schedule of imports and local production under the May 13 decision by the product review meeting changed and aligned to respond to market demand and ensure sufficient stocks and uninterrupted supplies. It also asked the MEPD to arrange additional cargoes for imports to mitigate the situation.

Citing a series of rules, law and evidences, the regulator said: “It is crystal clear that as per applicable policy and law/rules, MEPD holds the exclusive responsibility to anticipate any such situation and take the remedial measures i.e. increasing local refineries’ production up to maximum and ask/ensure additional imports by OMCs to avoid the crisis”.

Moreover, the import of petroleum products was “patently a policy issue involving foreign exchange, which exclusively rests with the federal government of Pakistan i.e. the Ministry of Finance and line Ministry of Energy & Petroleum Division”, Ogra noted.

It said that under rule 7 of Pakistan Petroleum (Refining, Blending and Marketing) Rules, every refinery was required to submit its half-yearly production programme to DGOil of the MEPD which had the powers under rule 8 to approve such a programme or change it, if required, under rule 9. Under rule 10, the DGOil is also to regulate the refineries to process crude oil or feed stocks from domestic or foreign source.

Under rule 13, the DGOil is also to specify and ensure maintenance of crude oil stocks by refineries and products by OMCs under rule 30A. Rule 30B empowered the DGOil and the MEPD to “access the deficit volumes of petroleum products and assign to OMCs specific volume to be imported to meet the demand”.

Also, it put on record that the MEPD regularly holds product review meetings on a monthly basis with all stakeholders — OMCs, refineries, Ogra, power plants, PIA, Railways, etc — “as MEPD is the authority for ensuring the product availability in the country”. The meetings review all the aspects and assessments — local production, carryover stock, change in consumption behaviour, etc — and then finalise “the Product Import Plan that include details of each and every ship, cargo, date of arrival”, which is approved by the DGOil.

Ogra’s responsibility was limited to creation of storages by companies before allowing them marketing and sale of products. The regulator said the country had a total storage capacity of 1.45 million tonnes of petrol and diesel and almost half of that (751,000 tonnes) storage capacity had been built over the last four years with an investment of Rs75 billion.

The responsibility of filling this storage capacity with product stock for 20 days was the responsibility of the MEPD. “Neither it is the mandate of Ogra to stop/curtail local refineries’ production or to ban imports, nor there exists any decision of Ogra in this regard whatsoever,” the regulator concluded, putting the entire blame on MEPD for the petroleum crisis.

https://www.dawn.com/news/1565882/ogra-finds-fault-with-handling-of-oil-crisis

Am I right in think that we import petrol and actually don't refine oil in PK in any meaningful quantities.
 
PM forms committee to probe petrol crisis

(Karachi) Prime Minister Imran Khan has constituted a committee to investigate fuel shortage crisis, media has reported. The committee will be headed by Special Assistant to PM Shahzad Qasim.

As per details, the committee has been tasked to investigate which oil marketing companies and petrol stations were involved in hoarding. It will also give recommendations and analyze the fuel situation in the country in wake of the coronavirus pandemic.

The PM has directed the committee to submit its inquiry report by July 10.

Earlier, Adviser to the Prime Minister on Petroleum Nadeem Babar said that there was sufficient evidence to show that oil marketing companies (OMCs) and petrol pump owners were storing oil in the current month while expecting an increase in the prices.

He said comparing the OMC sales figures in the first 10 days of June this year it was 52 percent higher than the same period of last year and the current average sales was around 32 to 33 percent higher than that of June 2019.

The advisor stated it was not possible that consumption had jacked up significantly over last year.This means that a major part of oil was going towards hoarding, he mentioned.

An artificial fuel crisis was created in the country soon after the government reduced petrol prices in June. An inquiry report into the country's petrol crisis blamed nine Oil Marketing Companies (OMCs) for the ongoing crisis.

The report said that nine OMCs had deliberately created a petrol crisis. Despite the presence of petrol in storage, the supply of petrol was restricted from June 1. The report also stated that these nine OMCs had formed a nexus to create a petrol crisis, while private companies had built anti-regulatory infrastructure to store petrol

https://www.brecorder.com/news/40001939/pm-forms-committee-to-probe-petrol-crisis
 
The Sindh government on Saturday allowed petrol pumps to open up throughout the province for 24 hours through a notification issued by the provincial Home Department.

The notification says the decision is a "continuation" of the orders issued on July 15. It also adds that the decision has also been implemented "as per the discussion and decision of the National Command and Operations Centre" meeting held on Saturday.

Apart from this, the provincial government has also changed the timings of bakeries operating in Sindh. The notification says bakeries will be allowed to open up from 6am to 10pm.

Petrol pumps in Sindh were operating on reduced timings after the provincial government announced a lockdown in March as part of drastic measures that were aimed to contain the spread of the coronavirus in Sindh.

https://www.geo.tv/latest/298743-sindh-govt-allows-petrol-pumps-to-remain-open-for-24-hours
 
Cabinet forms panel to probe recent petroleum shortage

ISLAMABAD: The federal cabinet on Tuesday took several important decisions on matters ranging from the recent shortage of petroleum products to the collapsed drainage system of Karachi.

Presiding over the cabinet meeting at the PM House, the prime minister expressed annoyance over non-release of dues to the media houses which had led to the delay in payment of salaries to the staff of some TV channels and newspapers.

“In order to ascertain the cause of the recent shortage of petroleum products in the country, the cabinet has formed an inquiry commission,” Information Minister Shibli Faraz said at a press conference after the cabinet meeting.

Mr Faraz said the commission, headed by Federal Investigation Agency Director General Abu Bakar Khuda Baksh, would take action against those involved in the scam. Other members of the commission would be from the Intelligence Bureau, Inter-Services Intelligence, State Bank of Pakistan, Securities and Exchange Commission of Pakistan, Oil and Gas Regulatory Authority, Compe*tition Commission of Pakistan, Hydrocarbon Development Institute of Pakistan and Federal Board of Revenue.

The commission will have the power to hire services of market experts to look into the decisions taken during the monthly and quarterly product review meetings, check import orders and inspect stocks at various points of the supply chain.

In a related move, the petroleum division moved a summary reportedly to delay import of Euro-V (10ppm) diesel and petrol due to certain difficulties, including an estimated increase in prices.

“Earlier Euro-V standard was to be enforced from August 1 this year, but the cabinet decided to implement it from September 1,” Mr Faraz said.

According to media reports, a series of inquiry committees had been constituted to investigate the causes of the shortage, but most of them did not come up to the expectations of the prime minister, either because of conflict of interest, lack of evidence or non-cooperation by the stakeholders.

Talking to Dawn after the press conference, the information minister said he was not aware of any of these committees.

https://www.dawn.com/news/1571721/cabinet-forms-panel-to-probe-recent-petroleum-shortage
 
ISLAMABAD: Petrol prices in the country are expected to increase again next month after the Petroleum Ministry recommended another increase in prices by up to Rs9.5/litre for August.

In a summary sent to the Finance Ministry, the Petroleum Ministry has proposed an increase of Rs7/litre in petrol price, Rs9.5 in diesel price, Rs6.21 in light diesel oil (LDO) prices and Rs6 increase in kerosene price.

If the government accepts this suggested increase in price, the price of petrol will go up from the current Rs100.1 to Rs107.1/litre, price of diesel will increase from Rs101.46 to Rs110.96/litre, LDO price will go up from the current Rs55.98 to Rs62.19/litre and kerosene oil price will increase to Rs62.06 from its current Rs59.06/litre price.

Last month, the government had jacked up petroleum products’ prices by 66% with petrol prices increasing by Rs25.58/litre, diesel Rs21.31/litre and kerosene by Rs23.50/litre and LDO by Rs17.84/litre.

The government is currently charging Rs30 per litre petroleum levy (PL) on petrol and diesel while Rs6/litre on kerosene and Rs3/litre on LDO. It is also charging a 17% general sales tax (GST) on all petroleum products.

https://www.geo.tv/latest/300446-petroleum-ministry-suggests-rs7litre-hike-in-petrol-prices
 
ISLAMABAD: Petrol prices in the country are expected to increase again next month after the Petroleum Ministry recommended another increase in prices by up to Rs9.5/litre for August.

In a summary sent to the Finance Ministry, the Petroleum Ministry has proposed an increase of Rs7/litre in petrol price, Rs9.5 in diesel price, Rs6.21 in light diesel oil (LDO) prices and Rs6 increase in kerosene price.

If the government accepts this suggested increase in price, the price of petrol will go up from the current Rs100.1 to Rs107.1/litre, price of diesel will increase from Rs101.46 to Rs110.96/litre, LDO price will go up from the current Rs55.98 to Rs62.19/litre and kerosene oil price will increase to Rs62.06 from its current Rs59.06/litre price.

Last month, the government had jacked up petroleum products’ prices by 66% with petrol prices increasing by Rs25.58/litre, diesel Rs21.31/litre and kerosene by Rs23.50/litre and LDO by Rs17.84/litre.

The government is currently charging Rs30 per litre petroleum levy (PL) on petrol and diesel while Rs6/litre on kerosene and Rs3/litre on LDO. It is also charging a 17% general sales tax (GST) on all petroleum products.

https://www.geo.tv/latest/300446-petroleum-ministry-suggests-rs7litre-hike-in-petrol-prices

what should the ideal rate be price per litre for petrol / diesel- for the avaerage pakistani
 
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Prices of petroleum products revised effective 1st August 2020.<a href="https://twitter.com/hashtag/Pakistan?src=hash&ref_src=twsrc%5Etfw">#Pakistan</a> <a href="https://t.co/gBqmqjcdeN">pic.twitter.com/gBqmqjcdeN</a></p>— Yusra Askari (@YusraSAskari) <a href="https://twitter.com/YusraSAskari/status/1289231907000025090?ref_src=twsrc%5Etfw">July 31, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 
The government on Friday raised the prices of petroleum products by up to Rs6.62 to share the impact of rising international prices with the consumers.

The price of petrol (motor spirit) has been increased by Rs3.86 to Rs103.97 per litre from the existing Rs100.11, according to a Finance Division press release.

The price of high-speed diesel (HSD) has been pushed to Rs106.46 per litre from the current price of Rs101.46, a rise of Rs5.

The new price of kerosene oil (SKO) will be Rs65.29, a jump of Rs5.97 over the existing Rs59.32.

Meanwhile, the price of light diesel oil (LDO) has been hiked by Rs6.62 to Rs62.86, from the current Rs56.24 per litre.

The decision to revise the fuel prices upwards was taken "in view of the rising oil prices trend in the global market", the brief statement issued by the Finance Division said.

The new prices are effective from August 1 (tomorrow), the first day of Eidul Azha.

The Oil and Gas Regulatory Authority (Ogra) had on Wednesday proposed an increase of about Rs7-9 per litre in the price of petrol and HSD for the next month and about Rs6 per litre increase in kerosene and LDO rates.

Informed sources had told Dawn that Ogra, which was bypassed last month in petroleum price adjustments, had this time forwarded a working paper to the government to inc*re*a*se petroleum prices based on existing tax rates and import costs of the Pakistan State Oil (PSO).

In June, the government had in a sudden move announced an increase of up to nearly Rs26 in the prices of petroleum products. The 27-66 per cent price shock had attracted widespread criticism.

https://www.dawn.com/news/1572173/govt-increases-petrol-price-by-rs386-diesel-by-rs5-for-august
 
Prices of petroleum products to remain unchanged, orders PM

(Karachi) In a bid to facilitate the people, Prime Minister Imran Khan has decided the government will not increase prices of petroleum products for the month of September, media reported on Monday. The prices will remain unchanged.

As per details, the prime minister took the decision in wake of the destruction from widespread rains across the country, especially Karachi where normal life came to a standstill. Imran stated that the citizens should not bear burden of price hike in hour of crisis.

“The federal government will not increase fuel prices as people are already going through difficult times due to coronavirus and recent rainfalls and floods across the country,” said the PM.

The PM rejected the summary forwarded by Oil and Gas Regulatory Authority (OGRA) for increase in prices of oil products.

Earlier, OGRA sent two proposals to the government regarding the price hike.

The first proposal has been sent in proportion to fluctuations in oil prices in the global market. It was recommended to increase the price of oil by Rs2 and light diesel by Rs1.60 per liter. Whereas, in the second proposal, OGRA has recommended increasing the price of petrol by Rs8, diesel by Rs9, kerosene by Rs4, and light diesel by Rs 4.5 per liter.

https://www.brecorder.com/news/40015366/prices-of-petroleum-products-to-remain-unchanged-orders-pm
 
This "rejection" of smaller price increases might sound good and earn some good will in the people but it comes back to bite HARD like the Rs 25 increase in one go in July. Stupid move imo. I hope a couple months down the road another big hit isn't given to the people.


Not sure why government isn't pushing for adoption of electric vehicles on war footing. We have 5GW of excess power ATM, the loadshedding that happens is due to transmission losses and not due to lack of capacity since previous governments just focused on building capacity but not on transmission. A simple analogy is no matter what the size and horse power of your pump if your pipe is just 2" dia then only so much water can flow through it. What's worse in this decade 2020-2030 we are going to add a further 15-20GW and demand is not expected to rise by that much unless we start growing at 6-8% for a sustained period.

On war footing improve transmission system and go for adoption of electric cars, that is the only solution for Pakistan to get out of this fuel dependence. At the very least electric motorbikes should have been common on the roads by now. Army of ministers and subject matter experts in the cabinet and a little unparh ganwaar like me knows the solution. Matlab hadh hai.
 
Prime Minister Imran Khan on Wednesday underscored the need for consensus among provinces and the federal government on the issue of gas, saying that if the country was falling behind, a province could not progress either.

Addressing a seminar on 'Sustainability, Security and Affordability of Natural Gas Supply in Pakistan', the premier said that the country could not progress without equitable growth.

Talking about the shortage of gas in the country, he highlighted the problems faced by the provinces. "Punjab has a deficit and is facing problems. Khyber Pakhtunkhwa says that it uses very little of the gas it produces," he said.

He expressed hope that the participants of the seminar, led by Special Assistant to the Prime Minister (SAPM) on Petroleum Nadeem Babar, would reach a consensus.

The premier warned that the country was heading towards a gas crisis. "I am alarmed because there will be a problem this winter but an even bigger problem next winter," he said.

His comments came a day after the federal government warned of an impending serious gas shortage, saying that Article 158 of the Constitution that promised priority rights to gas producing provinces was becoming irrelevant and all stakeholders would have to reach a consensus on a workable way forward.

“We will be going towards massive (gas) load shedding in the coming days. We have to find a solution today how to increase supplies,” SAPM Babar said at a news conference with Federal Energy Minister Omar Ayub Khan on Tuesday.

Babar said "the issue of Article 158 of the Constitution had been pending for 10 years and had since been taken over by other ground realities and more serious issues". Based on demand growth and domestic gas production even if utilised in gas-producing provinces, Sindh would be facing gas shortfall in one and half years, followed by Khyber Pakhtunkhwa in two and half years and Balochistan in about three and half years, he said.

Addressing the participants at the seminar, the premier said that they should consider national interests. "It is very important that consensus building happens and there is awareness among the masses so they take the right decision," he said.

"When there is no consensus, provinces start feeling like they are being sidelined."

Emphasis on long-term planning
The prime minister also emphasised the importance of debates on matters of national interest. He gave the example of China, who he said had "developed at a rapid pace not seen before" because the government had a robust system of debates.

"They have splendid debates. They have a great system of meritocracy and their leadership reaches the positions they are at through rigorous struggle. Secondly, they have great long-term planning. This is very important," the premier said.

"When a country does long-term planning, then it avoids situations like the one Pakistan is stuck in today," he added.

The premier said that Pakistan had a lot of potential in the hydro-electricity sector but it had not been utilised because previous governments did not focus on it.

"No one thought of it because our system is such that [political parties] plan only for elections so they can get immediate results. Nobody thought about it, even during military rule.

"If we had debated about what kind of energy mix Pakistan should have and what fuel should have been used to generate electricity sooner, our industry would not be in trouble today and our people would not be burdened."

Subsidies not being used for 'original purpose'
Referring to subsidies, the prime minister said that they were not being used for their "original purpose".

"Subsidies are given for two reasons: to lift people up and to create wealth. Subsidies should increase wealth, GDP, per capita income and for a country like ours, [help with] returning loans. The recent presentation I received on subsidies revealed that totally different people are taking subsidies," he said.

He expressed the hope that the seminar would also discuss alternate sources of gas and power generation. He thanked the independent power producers (IPPs) for their agreement with the government.

"I am very thankful to IPPs because the agreement with them will provide a huge relief for the people."

"The debate in the seminar is very important to see where we are going, how to tackle our depleting gas reserves and the difference between locally produced and imported gas," he said.

"There is such a big gulf between the imported gas and the price we sell it at which is increasing our circular debt. We are producing electricity at Rs17 per unit but selling it at Rs14 per unit which is adding to our circular debt," the premier said.

He added that he hoped the seminar would present a roadmap for the future on its conclusion.

https://www.dawn.com/news/1578742/p...ong-provinces-warns-of-impending-gas-shortage
 
The Pakistan government has reduced the price of petrol by Rs1.57 per litre for November.

A notification was issued by the finance ministry on Saturday.

A litre of petrol will now cost Rs102.40. The price of high speed diesel has been reduced by Rs0.84 per litre.

Kerosene will cost Rs65.29 per litre and light diesel oil will be for Rs62.86. The prices remain unchanged.

The new prices will be effective from midnight and be applicable for 15 days.

Earlier today, the Oil and Gas Regulatory Authority had recommended a reduction in the price of petroleum products by up to Rs2 per litre from November 1.

Two weeks ago, the government decided to maintain the prices of petroleum products for the next 15 days. OGRA had sent a summary of a Rs2 per litre increase in prices to the Ministry of Petroleum.

https://www.samaa.tv/money/2020/10/pakistan-government-slashes-petrol-prices-by-rs1-57-for-november/
 
ISLAMABAD: Prime Minister Imran Khan has said the government was compelled to pass on the impact of oil prices to consumers to avert additional debt burden on the country.

Speaking to a private television channel during his visit to North Waziristan on Wednesday, which was aired on Friday night, Prime Minister Khan said the country could not afford more loans to keep petroleum prices at the minimum benchmark.

He said devaluation of rupee had impacted prices of petroleum products, pulses, ghee and other imported items, which gave rise to inflation.

“The value of dollar surged from Rs107 to Rs160 during the current government’s term that had also pushed the prices up,” he added.

The prime minister pointed out the exorbitant contracts signed by the previous government with power producing companies.

“The incumbent government could not take such measures as it would further burden the country with debt,” he said.

To a question, Mr Khan said after merger with Khyber Pakhtunkhwa, people of the tribal districts would see a positive change vis-à-vis development of their area under the provincial government’s mega development package.

Asked about the UK-based assets recovery firm, Broadsheet, the prime minister said it had nothing to do with the present government as Gen Pervez Musharraf had signed the contract and backtracked unilaterally by giving NRO (National Reconciliation Ordinance) to Nawaz Sharif.

“The government has formed a ministerial committee, also comprising judges and lawyers, to probe the case and suggest a way forward to retrieve public money stacked abroad. The government had to pay Broadsheet or face a daily markup of 5,000 pounds,” he said.

Prime Minister Khan also called for an open hearing of the foreign funding case against the ruling Pakistan Tehrik-i-Insaf (PTI).

He said open hearing of the case, be it by the Supreme Court or the Election Commission of Pakistan, should be held.

“PTI’s whole funding was legal with complete record of donors, contrary to the opposition parties, which were unable to name their financiers,” he said.

“Would I have called for an open hearing if I was frightened,” he questioned, adding that the allegations of Israeli or Indian funding by an anti-PTI individual were ill-intentioned and mala fide.

Read: ECP rules out open hearing of foreign funding case

Mr Khan said in the past, the opposition had its own handpicked chief election commissioner.

“Now as the incumbent government had appointed the new Election Commission chief with the consultation of the opposition, people should now know whether Israel or India funded PTI or not,” he added.

Ravi Urban project
PM Khan said the Ravi Urban Development Project was significant for economic and social uplift of Lahore and would generate jobs.

“The completion of the project will not only increase economic activity, but also create employment opportunities through quality construction on unused land,” he said.

He was speaking in a meeting on Friday which discussed progress on projects, including Ravi Urban Development, Central Business District, Walton Airport relocation and provision of affordable housing to the people of adjoining small towns.

The meeting was attended by Special Assistant Dr Shahbaz Gill, Naya Pakistan Housing Authority Chairman retired Lt Gen Anwar Ali Haider and senior officials.

Provincial Finance Minister Makhdoom Hashim Jawan Bakht, Adviser to Punjab Chief Minister Dr Salman Shah, Special Assistant to CM Dr Firdous Ashiq Awan and Ravi Urban Development Authority Chairman Rashid Aziz participated through video-link.

The meeting was informed that negotiations with consultants and design issues in the Ravi City project had entered their final stage. It was also updated on the waste water plant and steps being taken to organise an investors’ conference in the near future.

The participants were briefed about the progress on land acquisition under the project.

Regarding the Central Business District project and the relocation of Walton Airport, the meeting was informed that commercial, retail and residential zoning of the project was in line with international standards.

The proposed projects under which affordable houses for the low income group would be constructed in the vicinity of small towns of Punjab were also discussed.

PM Khan directed the relevant authorities to set timelines and initiate the project at the earliest in view of its usefulness for the poor and low income groups.

The low-cost three-to-five marla housing project will initially cover 25 to 27 districts of the province and will gradually be expanded to 87 other areas.

The Punjab government will arrange land and capital in the initial phase and provide subsidy under mortgage financing in the next phase.

Published in Dawn, January 23rd, 2021
 
Prime Minister Imran Khan has asked his special assistant on petroleum Nadeem Babar and secretary petroleum to step down in order to ensure transparency in the fuel crisis probe, Planning Minister Asad Umar said on Friday.

Asad along with other federal ministers on was addressing a press conference in Islamabad to brief the media about the recommendations submitted by the ministerial committee formed to probe into fuel crisis last year.

However, the planning minister asserted that the decision has been taken to ensure transparency in the investigation and clarified that both the officials had not been found guilty of any wrongdoing.

“Prime minister has tasked the FIA [Federal Investigation Agency] to carry out forensic audit of OMCs [Oil Marketing Companies],” he said.

Asad said PM Imran will not let the “mafia” involved in embezzling the nation’s wealth go scot-free. “The message from prime minister to the mafia is that their time is up.”

On December 15, 2020, the commission of inquiry headed by the FIA presented before the federal cabinet its report on a petrol crisis that hit the country in June last year on the heels of a sugar and flour crisis.

The report had noted that one of the reasons behind the crisis was a lack of coordination among the departments working under the Petroleum Division and had also held the petroleum secretary and director-general oil responsible.

It had noted that the OMCs deliberately stopped supplying petrol to pumps despite having stocks at their disposal. The report said the OMCs had made from Rs6 to Rs8 billion during the June oil crisis by committing every illegality in “business as usual” manner.

https://tribune.com.pk/story/2291646/sapm-nadeem-babar-asked-to-step-down-over-fuel-crisis-asad-umar
 
Prime Minister Imran Khan has asked his special assistant on petroleum Nadeem Babar and secretary petroleum to step down in order to ensure transparency in the fuel crisis probe, Planning Minister Asad Umar said on Friday.

Asad along with other federal ministers on was addressing a press conference in Islamabad to brief the media about the recommendations submitted by the ministerial committee formed to probe into fuel crisis last year.

However, the planning minister asserted that the decision has been taken to ensure transparency in the investigation and clarified that both the officials had not been found guilty of any wrongdoing.

“Prime minister has tasked the FIA [Federal Investigation Agency] to carry out forensic audit of OMCs [Oil Marketing Companies],” he said.

Asad said PM Imran will not let the “mafia” involved in embezzling the nation’s wealth go scot-free. “The message from prime minister to the mafia is that their time is up.”

On December 15, 2020, the commission of inquiry headed by the FIA presented before the federal cabinet its report on a petrol crisis that hit the country in June last year on the heels of a sugar and flour crisis.

The report had noted that one of the reasons behind the crisis was a lack of coordination among the departments working under the Petroleum Division and had also held the petroleum secretary and director-general oil responsible.

It had noted that the OMCs deliberately stopped supplying petrol to pumps despite having stocks at their disposal. The report said the OMCs had made from Rs6 to Rs8 billion during the June oil crisis by committing every illegality in “business as usual” manner.

https://tribune.com.pk/story/2291646/sapm-nadeem-babar-asked-to-step-down-over-fuel-crisis-asad-umar

Wherever you look there is a mafia. The Sugar mafia controlled by the Sharifs, Zardaris, Tareens etc have held the country hostage, the atta mafia smuggling subsiidised atta out of PK and causing shortages or just stealing the atta,as is the practice in Billos Sindh and the petrol mafia causing shortages when oil was cheap.
If the mafia win against Kaptaan, PK will lose. On top of these mafias, we have the media, lawyers and Judiciary supporting these thugs and crooks. If I was a betting man, my money is on the mafia but if anyone has the passion and belief then it's IK. May Allah help him to beat these crooks but the signs are not promising.
 
State Minister for Information and Broadcasting Farrukh Habib said Monday the price of petroleum products would remain unchanged for May.

"The petroleum products price will remain the same till May 31," the state minister said, adding Prime Minister Imran Khan had decided not to burden the people despite increasing rates in the international market.

The minister claimed the national exchequer would suffer a loss of Rs2.77 billion if the rates of petroleum products are not increased.

"The government has not only adjusted petroleum levy but also reduced the sales tax on light diesel and kerosene oil."

Therefore, petrol will continue to cost Rs108.56 per litre, diesel Rs110.76 per litre, kerosene oil Rs80, and light diesel oil Rs77.65 per litre.

PM Imran Khan had not increased petrol prices in April despite an increase in the rates internationally, and due to that, the national exchequer suffered a loss of Rs4.8 billion.

GEO
 
Islamabad [Pakistan], June 29 (ANI): Amid high levels of inflation in Pakistan, the country's Oil and Gas Regulatory Authority (OGRA) has suggested hiking the price of petroleum products in the country from July 1.

Citing sources, Geo News reported that prices of petroleum products in the country were likely to surge by up to Rs 6 per litre from July 1..

The sources said that OGRA, in its summary to the Petroleum Division, has asked to increase the price of petrol by Rs6 and Diesel by Rs 3.

Meanwhile, the Petroleum Division will make a final decision after consultations with Prime Minister Imran Khan.

The current rate of petrol price is Rs 110.69, while the expected rate from July 1 is Rs 116.69. whereas, the current rate of Diesel is Rs 112.55 while the expected rate from July 1 is Rs115.55, Geo News reported. (ANI)

https://in.news.yahoo.com/prices-petroleum-products-pakistan-likely-173544952.html
 
ISLAMABAD: As petrol stocks plummeted to three-five days’ consumption cover throughout the country, except Sindh, the government increased its price by Rs1.71 per litre and decided to change berthing order of various oil vessels.

A senior government official told Dawn that the country’s overall petrol stocks had fallen below 260,000 tonnes that were equivalent to less than 10 days of consumption. After excluding Sindh where petrol stocks are enough for about 30 days, the product’s availability in Punjab and Khyber Pakhtunkhwa is for less than five days and in Balochistan and northern areas for three days.

Higher consumption, high tide at the sea and poor planning and stock management were termed key reasons for the shortage.

Government decides to change berthing order of various oil vessels; OMCs seek removal of tax anomalies

To cope with the situation, the Petroleum Division on Friday requested the Ministry of Maritime Affairs to prioritise berthing of vessels carrying motor gasoline (petrol). “Keeping in view the critical demand/supply position of petroleum products, it is requested that sequence for berthing” of petrol be prioritised at Karachi Port Trust and Fauji Oil Terminal Company between July 31 and Aug 3, it said.

During this period, five ships carrying a total of 210,000 tonnes of petrol will be berthed at the two terminals — two ships belonging to Pakistan State Oil (PSO) and the remaining to Total Parco, Go and Shell Pakistan.

Sources said some disruptions were also caused by the delay in arrival of crude vessel of Byco Petroleum due to high tide and exhaustion of the product in its storage. A vessel belonging to Shell also faced delays due to high tide. Some supply problems were because of Hascol that is currently facing financial difficulties.

A recent drop in supplies from Iran through smuggling and security issues were also a reason behind lower stocks in Balochistan, the sources said. On top of that, the budgeting cost of refineries had increased because of upfront payment of GST following the recent federal budget.

The sources said that PSO being the largest supplier had reasonable supplies from Pakistan, Attock and to some extent Parco refineries, but smaller oil marketing companies (OMCs) were facing supply problems.

The sources said the government had been asking the refineries at monthly product review meetings (PRMs) to ensure supplies also to smaller companies, but practically such directives could not be implemented. The refineries contend they had long-term supply contracts with major oil marketing companies.

The berthing schedules of various vessels of different products were also disturbed by elimination of the role of the Oil Companies Advisory Council (OCAC) from the birthing priorities that affected the system. The resultant divided responsibility between the directorate general of oil and the Oil and Gas Regulatory Authority (Ogra) in the PRMs has so far not been helpful. As a result, such issues then reach the petroleum secretary’s office for coordination with the maritime affairs ministry with a time lag.

Petroleum products’ prices
Special Assistant to the Prime Minister on Political Affairs Shahbaz Gill announced through his Twitter account that the price of petrol was being increased by Rs1.71 per litre on the advice of Ogra, while that of diesel was being kept unchanged because it affected the common and farmers.

Interestingly, Ogra had worked out a reduction of Rs2.27 per litre in the price of high speed diesel but at the request of the Finance Division, the reduction was absorbed against an equivalent increase in petroleum levy.

The ex-depot price of petrol was increased by 1.5 per cent to Rs119.80 from Rs118.09 per litre. The price of kerosene was raised by 35 paisa to Rs87.49 per litre. The prices of high speed diesel (HSD) and light diesel oil (LDO) were kept unchanged at Rs116.53 and Rs84.67 per litre, respectively, according to Mr Gill’s tweet.

On the other hand, the Oil Marketing Association Pakistan (OMAP), a representative body of oil marketing companies, on Friday asked the government to remove the anomaly in the levying of turnover tax applicable to the oil marketing sector by linking it to margins earned by oil marketing companies and reducing its rate to 0.25pc.

OMAP Chief Executive Officer Dr Ilyas Fazil, in a letter to Finance Minister Shaukat Tarin, said: “The rate of turnover tax (currently at 0.75pc) should be rationalised/aligned to remove all elements of discrimination and be reduced to 0.25pc in order to provide much-needed relief to cash flows and profits. Minimum tax should, moreover, be linked to the gross margins for OMCs rather than the revenues as OMCs have a very thin government-regulated margin.”



He argued that the rate of 0.75pc has been fixed for OMCs without taking into account average profit to turnover ratio in the relevant sector, which is lower than many other industries for which turnover tax rate has been fixed at 0.25pc as it was levied on rice mills and distributors of pharmaceutical industries, the prices of whose products were controlled by the government like the OMCs that should be given a similar treatment for being a highly regulated sector.

Besides, he said, the dealers, sub-dealers, retailers and wholesalers of fast-moving consumer goods, sugar, cement and edible oil have been allowed discounted rate of 0.25pc under Clause (24D) of Part II of the Second Schedule to the Income Tax Ordinance, 2001, like OMCs.

Published in Dawn, July 31st, 2021
https://www.dawn.com/news/1637884/petrol-price-raised-as-stocks-plummet
 
PPP Chairman Bilawal Bhutto-Zardari said Monday the federal government does not care for poor people's problems and rejected the recent petroleum price hike.

The PPP chairman, in a statement, said in one month, Rs10 have been increased on a litre of petrol. "The government is [increasing petrol prices] to meet its own expenses."
 
Oil firms warn govt of ‘impending collapse’

The Oil Com*panies Advisory Council (OCAC) has sent a note of caution to the Oil and Gas Regulatory Autho*rity (Ogra) and the energy ministry that the oil sector is on the brink of collapse due to a massive rupee plunge over the last few days, despite an eight per cent month-on-month reco*very in oil sales last month.

The country’s overall oil sales (petrol, diesel and furnace oil) stood at 1.44 million tonnes in January, as against 1.33m tonnes in December 2022, while sales posted a drop of 19pc to 10.47m tonnes during the first seven months of the current financial year (2022-23). The figure was 13m tonnes for the same period last fiscal year.

The OCAC informed the government that the sudden rupee depreciation against the dollar had caused losses totalling billions of rupees as letters of credit (LCs) were expected to be settled on the basis of new rates, whereas the related product had already been sold.

These losses would have an impact on profitability and viability of the sector as in some cases the losses might exceed the entire year’s profit, the letter said.

...
https://www.dawn.com/news/1735200/oil-firms-warn-govt-of-impending-collapse
 
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